FT reports Starbucks explored potential Chipotle takeover

Starbucks explored buying restaurant chain Chipotle, the Financial Times reported on October 8, citing people familiar with the matter. No agreed deal has been announced, and Starbucks declined to comment on the report while saying it remained focused on its existing strategy.

The FT said the coffee chain had worked with advisers on a takeover proposal in recent months. RIA Novosti put Chipotle's market value at about $39 billion. That figure is not an announced purchase price.

FT sources suggested the deal might not proceed because of the complexity of combining two large consumer businesses. A potential acquisition could exceed Burger King's $11.4 billion purchase of Tim Hortons in 2014.

Chipotle shares rose about 8% at one point in trading following the report, while Starbucks shares fell about 3%, RIA Novosti reported. Those moves describe the market reaction on October 8 rather than current prices.

Founded in Seattle in 1971, Starbucks operates more than 41,000 coffee shops. Chipotle Mexican Grill, founded in 1993, specialises in burritos and tacos. The source report said it had more than 4,200 restaurants across the United States, Canada, Britain, France, Germany and the Middle East and nearly 140,000 employees.