Starbucks announced it will sell a controlling stake in its China operations to investment firm Boyu Capital for $4 billion, forming a joint venture in which Boyu holds up to 60% and Starbucks retains 40%.

Starbucks will continue to own and license its brand and intellectual property to the new entity.

The total value of Starbucks’ China business is expected to exceed $13 billion, including its retained stake, CNN has reported.

The divestment comes as Starbucks’ market share in China has dropped sharply—from 34% in 2019 to 14% last year—amid increased competition from local coffee chains and changing consumer habits during the economic slowdown.

This deal represents one of the most valuable recent divestments of a China unit by a global consumer company.