Mubadala agrees to take a stake in China’s Luckin Coffee in $1 billion deal

Mubadala has agreed to take a significant minority stake in Luckin Coffee, the fast-growing Chinese coffee chain, in a transaction worth about $1 billion alongside its controlling shareholder, Centurium Capital. The figure covers the whole transaction, not necessarily Mubadala’s own investment, and neither Mubadala’s stake nor the deal’s final closing has been disclosed; it remains subject to customary approvals. Luckin operates more than 36,000 stores and is built less like a traditional café brand than a high-volume, app-led retail network, linking orders, promotions and store operations through its digital systems. For Mubadala, the investment is a bet that China’s growing everyday-coffee habit can support a consumer business at enormous scale, while expanding its exposure to Chinese consumers without taking control of the company.