Starbucks upping its ante in China's coffee market

Company's stake in joint venture with Maxim's to increase from 5% to 50%

The Associated Press

HONG KONG - Starbucks Corp. said Thursday it will regain control of a southern China joint venture as overseas investors gear up for a brewing battle in China's coffee market.

In a deal with its Hong Kong partner Maxim's Caterers Ltd., the Seattle-based coffee maker agreed to raise its stake in the joint venture from 5 percent to 51 percent.

Terms of the deal weren't disclosed. But Maxim's, Hong Kong's biggest catering firm, will acquire a 30-percent interest in Starbucks' new operation in China's southwestern city of Chengdu as part of the transaction.

More...