Starbucks said it will sell control of its operations in China to private equity firm Boyu Capital in a deal valuing the business at $4 billion, as the U.S. coffee giant seeks to reignite growth in its second-largest market amid intensifying competition from local rivals, as reported by Reuters.

The Seattle-based company said funds from Boyu will help it expand in China, where budget chains such as Luckin Coffee and Cotti Coffee have disrupted the market with lattes priced at just 9.9 yuan ($1.4), a fraction of Starbucks’ prices.

Boyu to Hold 60% Stake in New Venture

Under the terms of the agreement, Boyu, whose founders include the grandson of former Chinese President Jiang Zemin, will own up to 60% of a new joint venture, while Starbucks will retain 40% and continue to license its bra

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