McDonald’s eyes bigger bite on China market
McDonald’s Corporation will now own 48%, remaining as a minority partner.
McDonald’s has announced that it has reached an agreement with global investment firm Carlyle to buy back its minority ownership stake in McDonald’s businesses in China, Hong Kong, and Macau.
The size of the deal was not made public.
The CITIC Consortium, mainly through its equity affiliate CITIC Capital, will maintain its controlling ownership stake. Upon completion of the transaction, the CITIC Consortium will continue to own 52%, and McDonald’s will remain a minority partner whilst increasing its stake from 20% to 48% ownership.
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McDonald’s president and CEO Chris Kempczinsk said China is now its second-largest market, doubling its restaurants to more than 5,500 since 2017.
“We believe there is no better time to simplify our structure, given the tremendous opportunity to capture increased demand and further benefit from our fastest growing market’s long-term potential,” Kempczinsk said.
“As McDonald’s China’s controlling shareholder, we are thrilled by McDonald's Corporation's continued commitment to our long-term partnership and the China market,” said Yichen Zhang, Chairman and CEO of CITIC Capital and Chairman of McDonald's China. "As we reach towards our goal of 10,000+ restaurants by 2028, we are more confident than ever in our ability to serve the Chinese consumer with McDonald's iconic taste.”
The deal is contingent upon customary regulatory approvals and is expected to close in the first quarter of 2024.
