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]
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