Key facts
- Mubadala Investment acquired a minority stake in Luckin Coffee.
- The transaction was valued at approximately $1 billion.
- Luckin Coffee faces intensifying competition in China.
Abu Dhabi's sovereign wealth fund, Mubadala Investment, has acquired a minority stake in the Chinese coffee chain Luckin Coffee for approximately $1 billion. The deal was conducted through a transaction involving Luckin Coffee's controlling shareholder. The investment comes as Luckin Coffee navigates a competitive landscape in China, including a delivery-subsidy war expected to continue through 2025. The company has been expanding its footprint, reportedly reaching 30,000 stores in eight years, and employing an app-based strategy to compete with rivals like Starbucks.