US investment firm Apollo Global Management is in talks to acquire a stake in the Starbucks franchise operated by Kuwaiti group Alshaya in the Middle East, North Africa and Central Asia, according to Reuters.
Alshaya has already considered selling its 30% stake. Reuters reports that the Saudi Public Investment Fund remained in negotiations for the stake.
In the regions concerned, the American coffee chain currently operates nearly 2,000 stores in 13 countries, including Morocco.
Reuters previously estimated its 2022 value at between $4 and $5 billion.
CEO Laxman Narasimhan acknowledged that he was facing “headwinds” due to an international, large-scale company’s boycott due to Starbucks’ alleged support to Israel.
Starbucks pointed out that Israel’s ongoing war on Gaza has had an impact on regional business in the Middle East and North Africa, resulting in lower-than-expected quarterly results.
Last December, both H&M and Starbucks franchises in Morocco, operated by Alshaya, had been reported t leave the Kingdom’s market.
Alshaya subsequently denied any withdrawal, affirming its commitment to Morocco and the continued operation of all Starbucks cafés. H&M stores however have indeed closed.
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