Private-equity firm KKR is in advanced talks to acquire an 85% stake in Dayao, a Chinese soft-drink producer, according to people familiar with the matter. Financial terms were not disclosed, but the sources said the buyout could be announced shortly as negotiations near conclusion. Separately, Hillhouse Capital is evaluating a purchase of Starbucks Corp.’s China operations in a transaction that could value the coffee chain’s local business at between USD 5 billion and USD 6 billion, people with knowledge of the process said. The Beijing-based investor joined a recent reverse roadshow organised by Starbucks China, where Carlyle Group and Trustar Capital also signalled interest. Goldman Sachs is advising on the prospective sale, which may stretch into 2026. Starbucks China generated about USD 3 billion in revenue in 2024 but has been trimming prices to counter intensifying competition from local rivals such as Luckin Coffee and Cotti. A successful sale would give the U.S. parent fresh capital while handing Hillhouse—or another buyer—control of the Seattle company’s second-largest market.