Sale allows McDonald’s to cut back exposure to China
Consortium with local expertise to buy 80% of fast-food company’s business on mainland and in Hong Kong
Beijing — US fast-food giant McDonald’s will sell a controlling stake in its Chinese and Hong Kong business for as much as $2.08bn to a consortium including state-owned Citic and the Carlyle Group, according to the companies’ joint statement on Monday. The deal is part of an international turnaround plan by the Golden Arches as it struggles with sluggish growth at home. Hong Kong-listed Citic, Citic Capital Holdings, Carlyle Group and McDonald’s would form a company to act as a franchisee for the chain’s business in mainland China and Hong Kong for 20 years, the companies said in the statement. Citic is a vast Chinese state-owned conglomerate with interests in businesses ranging from energy and manufacturing to property. In a statement to the Stock Exchange in Hong Kong, it said the purchase would deepen its exposure to China’s consumer sector, "which is poised to be the main driver of China’s economy for decades to come". The burger chain in 2016 announced plans to sell more than 2...
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