CITIC-Car­lyle near deal for McDonald’s China

China Daily (Hong Kong) - - BUSINESS - By REUTERS

A con­sor­tium led by pri­va­tee­quity firm Car­lyle Group and Chi­nese con­glom­er­ate CITIC Group Corp has neared a deal to buy McDonald’s Corp’s stores in the Chi­nese main­land and Hong Kong for up to $3 bil­lion, a source with di­rect knowl­edge of the mat­ter said.

The deal is likely to be signed be­fore Christ­mas, the source said.

Reuters re­ported in Oc­to­ber that US buy­out firms Car­lyle and Bain Cap­i­tal LLC had been the front run­ners among the bid­ders for the fast-food gi­ant’s China as­sets.

McDonald’s in March said it was re­or­ga­niz­ing op­er­a­tions in Asia, bring­ing in part­ners as it switches to a less cap­i­tal-in­ten­sive fran­chise model.

The com­pany hired Mor­gan Stan­ley to run the sale of about 2,400 restau­rants in the Chi­nese main­land and Hong Kong.

Fi­nan­cial Times re­ported ear­lier on Wed­nes­day that Bain Cap­i­tal had dropped out of the race, and that a group led by CITIC Group and Car­lyle were the front run­ners to the deal.

Car­lyle de­clined to com­ment, while McDonald’s was not im­me­di­ately avail­able for a com­ment.

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