AlShaya halts sale of Starbucks stake

The sale of a stake in Starbucks (SBUX.O) Middle East, North Africa, and Central Asia, operated by Kuwait’s AlShaya Group, is currently on hold, according to two individuals familiar with the situation.

Ongoing geopolitical unrest and regional boycotts make it difficult for bidders to assess the franchise’s value. AlShaya is not rushing the sale, one source said, speaking anonymously due to the private nature of the matter.

AlShaya has been aiming to sell a 30 per cent minority stake in a process known as Project Emerald. A second source mentioned that talks may resume next year if the situation improves.

Both AlShaya and Starbucks declined to comment, with Starbucks stating it “does not comment on rumours or speculation.”

Apollo Global Management and Saudi Arabia’s Public Investment Fund (PIF) have reportedly expressed interest in the deal. In January, Starbucks acknowledged the Israel’s aggression on Gaza impacted its regional business amid boycotts but reaffirmed its commitment to global growth. In March, Reuters reported that AlShaya planned to lay off over 2,000 employees as a result of consumer boycotts linked to the Gaza war.

Attribution: Reuters

Subediting: M. S. Salama