McDon­ald’s sells most of its busi­ness in China

China Daily (Canada) - - NEWS CAPSULE -

An­other 1,500 McDon­ald's are set to open across the Chi­nese main­land and Hong Kong in five years un­der the largest fran­chise deal out­side the US be­tween the fast-food giant and a con­sor­tium led by CITIC and Car­lyle Group.

McDon­ald’s an­nounced on Mon­day that the Bei­jing­based con­glom­er­ate had won the fran­chise bid to run its China op­er­a­tions for the next 20 years.

The $2.08 bil­lion deal will give state-owned CITIC and CITIC Cap­i­tal a con­trol­ling stake of 52 per­cent in the new en­tity, with US buy­out firm Car­lyle hold­ing 28 per­cent and McDon­ald’s 20 per­cent of shares, ac­cord­ing to McDon­ald's CEO in China, Phyl­lis Che­ung.

With this trans­ac­tion, McDon­ald is re-fran­chis­ing all of its 2,600-plus stores in the Chi­nese main­land and Hong Kong, a ma­jor step to­ward turn­ing around its for­tunes in Asia and cut­ting costs glob­ally.

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