McDonald's sells China biz for $2 bn to Citic, Carlyle

The turnaround plan announced involved making 95 per cent of its restaurants franchises

McDonald’s said on Monday that it would sell its businesses in mainland China and Hong Kong for $2.08 billion to Citic, a state-owned conglomerate, and the Carlyle Group, a private equity firm.

The deal gives Citic and Carlyle franchise rights for 20 years. Citic and its investment arm, Citic Capital, will have a controlling stake of 52 per cent, while Carlyle will take 28 per cent. McDonald’s will retain the remaining fifth of the company.

“China and Hong Kong represent an enormous growth opportunity for McDonald’s,” Steve Easterbrook, McDonald’s chief executive, said in a news release. “This new partnership will combine one