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BUSINESS & TECH

McDonald’s to Sell China Stores to Citic, Carlyle

By Wang Duan, Yang Yanwen and Yang Ge
Citic will lead a group of investors buying McDonald's China and Hong Kong stores in a deal that values the business at $2.1 billion. Photo: Visual China
Citic will lead a group of investors buying McDonald's China and Hong Kong stores in a deal that values the business at $2.1 billion. Photo: Visual China

(Hong Kong and Beijing) — Global fast-food giant McDonald’s Corp. will sell 52% of its China and Hong Kong stores to local financial services conglomerate Citic, ending a nearly yearlong process that will value the unit at up to $2.1 billion.

McDonald’s and U.S. rival Yum Brands Inc. have been trying to jump-start their sluggish China operations for the last few years in the face of growing local competition and growing demands from increasingly sophisticated Chinese consumers. As part of that drive, both companies have been trying to give their China operations more autonomy.

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