In a deal worth US$2.08 billion, McDonald’s said it will sell 80 per cent of its fast-food restaurant business in Hong Kong and mainland China to the largest Chinese international trust company and U.S. private equity firm Carlyle Group.
After the cash-and-shares transaction, CITIC and CITIC Capital will own a 51 per cent controlling stake, while Carlyle will own 28 per cent. McDonald’s will keep a 20 per cent interest in the company, according to a joint press release.
The new partnership will act as the master franchisee responsible for McDonald’s businesses in mainland China and Hong Kong for the next 20 years, the release said.
After the deal, more than 1,500 restaurants will be opened in China and Hong Kong over the next five years, it said.
U.S.-based McDonald’s currently owns 2,400 outlets in China, and 240 in Hong Kong.