Excerpt from USATODAY
McDonald's is handing over an 80% stake in it's China-based restaurants to a team that includes the nation's biggest conglomerate.
The roughly $2.1 billion deal will form a new company that will link McDonalds with CITIC Limited, a Chinese company with businesses that include manufacturing, financial services and real estate. The other partners include CITIC Capital Holdings, and the Carlyle Group, and together the goal is for the partnership to help bolster sales at the hamburger giant's existing eateries as well as open an additional 1,500 restaurants in China and Hong Kong by 2022.
The move reflects McDonald's emphasis on shifting restaurants to franchisees, allowing it to shed the expenses that come with managing an individual eatery's staff and operations but still make a profit. .
The $2.08 billion transaction will leave CITIC and CITIC Capital with interests of 52%, giving it majority control. Carlyle will have a 28% stake, and McDonalds will hold onto 20% of the restaurant interests.
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