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Carlyle, Chinese State-Owned Enterprise Grabs 80% Stake In McDonald’s China Business

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McDonald's China

In the face of an increasingly competitive environment, McDonald’s is selling an 80% stake in its China business to a Chinese state-owned enterprise.

The deal values McDonald’s Chinese business at $2.08B, and the group buying the stake includes Citic, the investment arm of Citic Capital Holdings, and U.S. private equity giant Carlyle Group, the Wall Street Journal reports. Citic will own a 52% stake while Carlyle gets the remaining 28%, according to the deal’s terms.

The deal has a 20-year life span and is expected to close this summer, allowing McDonald's to achieve its goal of franchising for 100% of its Chinese restaurants. [WSJ]