Tokyo/New York: Starbucks plans to take full control of its Japanese operations for more than $900 million (Dh3.3 billion) in a bid to accelerate growth in its second-largest market by retail sales.

The announcement by the world’s largest coffee chain that it would buy the 60.5 per cent of Starbucks Japan it does not already own from Sazaby League for $913.5m, in two stages, sent shares of Starbucks Japan up 4.5 per cent to 1462 yen (Dh49) on Wednesday morning in Tokyo.

The US coffee chain said it was approached by Sazaby, a brand owner, over the summer about selling its stake once its licence to operate the Starbucks franchise in Japan expired. Starbucks has more than 1,000 stores in Japan and employs 25,000 people.

Sazaby has run the Japanese operations since the joint venture was launched in 1995. After opening its first store in the posh area of Ginza in the summer of 1996, Starbucks became an instant success and a household name, defying the country’s deflationary economic conditions with prices set higher than those offered by home-grown coffee chains.

Over the past decade, Starbucks Japan saw its sales more than double while its net profit has increased fivefold. Its rapid growth in Japan came even as some overseas franchises faced difficulty in a heavily crowded market. McDonald’s, for example, has grappled with falling sales in recent years even before a food safety scandal involving a Chinese chicken supplier came to light in July.

Starbucks said it will take a 79 per cent controlling interest by the company’s fiscal first quarter, which runs through December. It will offer 965 yen per share for Sazaby’s 39.5 per cent stake. The board of Starbucks Japan said it would recommend the Y1,465 per share offer for the remaining 21 per cent stake held by public shareholders, which represents a 12 per cent premium to the 30-day average share price.

The move comes as Starbucks focuses increasingly on its overseas expansion. Asia represented 6 per cent of sales and 10 per cent of the company’s operating in 2013, up from 5 per cent and 9 per cent a year earlier, respectively.

“Full ownership of Starbucks Japan enables us to build on the amazing foundation of customer trust and loyalty our partners have achieved by continuing to take care of our people, delivering the highest quality coffee and innovating in product, store design and the digital experience,” Howard Schultz, Starbucks chief executive, said.

The company said it may introduce new concepts in Japan such as Teavana, a chain of stores selling tea and teaware.

Shares in Starbucks have fallen 6 per cent this year, trailing the 7 per cent gain by the S&P 500.