Consortium Acquires McDonald’s China

[  Hong Kong SAR, CHINA  ]

Acting as a consortium, CITIC Limited, CITIC Capital Holdings and The Carlyle Group are acquiring a majority stake in McDonald’s.   CITIC will own the controlling 52% share of the new partnership.  McDonald’s retains a 20% interest in the deal.

According to a press release by McDonald’s Corp., the acquiring consortium act as the master franchisee responsible for McDonald’s businesses in mainland China and Hong Kong for a term of 20 years.

McDonald’s values the consortium’s acquisition at $2.08 billion.

The deal is pursuant to McDonald’s’ strategy to transform itself primarily to a franchise organization, to less than 5% of its global locations.

Yum Brands made a similar transaction, just months ago.

CITIC Limited is China’s largest operating and investment enterprise, managing a myriad of business interests within the PRC and around the world.  CITIC Limited is listed on the Stock Exchange of Hong Kong, where it is a constituent of the Hang Seng Index. CITIC Group, a Chinese state owned enterprise, owns 58% of CITIC Limited.

McDonald’s Corp. made the deal announcement in a January 8, 2017 press release.