Goubuli in talks to buy US coffee chain

Goubuli Group, the best-known stuffed-bun maker on the mainland, said the American coffee chain it is going to buy would be positioned differently from potential rival Starbucks in the country, though both firms will be in the same specialty coffee market battling for customers.

The move by Goubuli comes hard on the heels of news that other Chinese companies are mounting bids for US firms, including tycoon Chen Guangbiao's interest in acquiring The New York Times.

A Goubuli spokeswoman confirmed yesterday its negotiation with the American company had entered the final stage and the deal was expected to close in the first half of this year.

She did not name the company but said the coffee house had hundreds of outlets in more than 40 countries.

"After acquiring it, we will help the brand open more shops in China," she said.

Starbucks is the world's biggest coffee retailer, worth more than HK$440 billion and selling coffee, tea and pastries in 19,000 stores and retail outlets.

The Goubuli spokeswoman said the brand might not compete directly with Starbucks, the most successful overseas coffee brand on the mainland, as it might adopt a different positioning to target the lower-end market.