Update | Citic, Carlyle to buy McDonald’s franchise in Hong Kong, China in a deal worth US$2.08 billion
Buyers intend to add more than 1,500 restaurants in China and Hong Kong over the next five years, according to deal agreement
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 US 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, based in Illinois, US, will keep a 20 per cent interest in the company, according to a press release put out by the three companies.
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 press 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.
McDonald’s currently owns 2,400 outlets in China, and 240 in Hong Kong.