Citic, Carlyle pay US$2.08b for McDonald’s Hong Kong, China franchises

Monday, January 09, 2017

(SCMP by Xie Yu) – McDonald’s Corp. said it will sell 80 per cent of its fast-food restaurant business in Hong Kong and mainland China in a deal valued at HK$16.14 billion (US$2.08 billion) 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 state, will keep 20 per cent interests in the company, according to press release by the three companies.

The formation of the partnership will act as the master franchisee responsible for McDonald’s businesses in mainland China and Hong Kong for 20 years, the press release said.

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