McDonald’s near deal to sell China stores
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A consortium led by private-equity firm Carlyle Group and Chinese conglomerate Citic Group Corp has neared a deal to buy McDonald’s stores in China and Hong Kong for up to $3 billion, a source with direct knowledge of the matter said.
The deal is likely to be signed before Christmas, the source said.
Reuters had reported in October that U.S. buyout firms Carlyle and Bain Capital LLC had been the front runners among the bidders for the fast-food giant’s China assets.
McDonald’s in March said it was reorganizing operations in Asia, bringing in partners as it switches to a less capital-intensive franchise model.
The company hired Morgan Stanley to run the sale of about 2,400 restaurants in China and Hong Kong.
Financial Times reported earlier on Wednesday that Bain Capital had dropped out of the race, and that a group led by Citic Group and Carlyle were the front runners to the deal.
Carlyle declined to comment, while McDonald’s was not immediately available for a comment.
Questions & Answers
Q.Which specific regions are included in this sale of McDonald's stores?
Which specific regions are included in this sale of McDonald's stores?
The deal involves the sale of McDonald's stores located in both China and Hong Kong. Approximately 2,400 restaurants in these areas are part of the transaction being managed by Morgan Stanley.
Q.What is the reason behind McDonald's decision to sell its China and Hong Kong stores?
What is the reason behind McDonald's decision to sell its China and Hong Kong stores?
McDonald's is reorganising its operations in Asia, seeking partners as it transitions to a less capital-intensive franchise model. This sale aligns with the company's strategic shift in the region.
Q.How much is the consortium expected to pay for McDonald's stores in China and Hong Kong?
How much is the consortium expected to pay for McDonald's stores in China and Hong Kong?
The consortium, led by Carlyle Group and Citic Group Corp, is nearing a deal to buy the stores for up to $3 billion. This figure was reported by a source with direct knowledge of the matter.
Q.Which other companies were initially considered as front runners for this deal?
Which other companies were initially considered as front runners for this deal?
Reuters previously reported that U.S. Buyout firms Carlyle and Bain Capital LLC had been the front runners among bidders. However, Bain Capital later dropped out of the race, according to the Financial Times.
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