Accenture considers selling China business for up to $1.5B - report

Accenture (ACN) is exploring a potential sale of its Greater China operations that could value the business at up to $1.5B, the Financial Times reported, citing people familiar with the matter.

The company has hired JPMorgan to evaluate options for the business after receiving unsolicited interest from potential buyers over the past year. The process could attract private equity firms and a limited number of strategic buyers, although a transaction is not guaranteed, the report said.

The potential divestment comes as consulting firms assess how AI could reshape demand for their services. While Accenture (ACN) expects businesses to increase spending on AI implementation, investors remain concerned that automation could reduce demand for traditional consulting and outsourced services.

Accenture (ACN) may retain a significant minority stake in the business to maintain continuity for clients, the report said. The operations span mainland China, Hong Kong, and Taiwan.

A sale could provide Accenture (ACN) with additional capital to pursue acquisitions that strengthen its AI capabilities, offer more competitive pricing, and increase shareholder returns through dividends and share buybacks.

The move comes as tighter data-security rules and cross-border data restrictions complicate operations for foreign consulting firms in China.

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