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McDonald’s buys back Carlyle Group’s stake in China operation as burger giant eyes bigger bite of its fastest-growing market
- After the transaction, McDonald’s will still be a minority stakeholder in the China unit but will increase its ownership from 20 per cent to 48 per cent
- ‘China is now a primary growth driver for McDonald’s, which wants to lessen its minority risk in a crucial market,’ says Brock Silvers of Kaiyuan Capital
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Yuke Xiein Beijing
Private equity giant Carlyle Group has agreed to sell its entire stake in McDonald’s China operation back to the fast food chain, the companies announced separately on Monday.
Carlyle will sell to the American hamburger chain its 28 per cent stake in the strategic partnership that operates and manages McDonald’s business in mainland China, Hong Kong, and Macau. The size of the deal was not made public.
After the transaction, McDonald’s will still be a minority stakeholder in the China operation but will increase its ownership from 20 per cent to 48 per cent. A consortium led by state-backed conglomerate Citic will maintain its controlling stake of 52 per cent.
The consortium will maintain it holding primarily through its private equity affiliate Trustar Capital, which was formerly known as Citic Capital Partners.
“We very much appreciate the strong partnership we have had with Citic Capital and McDonald’s Corporation,” said Xiang-Dong Yang, chairman of Carlyle Asia in a statement. “Together, we transformed the business, accelerating its growth profile and revolutionising its digital marketing and operational capabilities.
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“The business has always delivered outstanding results and we wish them every success in their next phase of growth.”
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