Citic Ltd has agreed to sell its 19.23% stake in Fast Food Holdings, the operator of McDonald’s in China and Hong Kong, to Trustar Capital for $430.3 million. This transaction will increase Citic Capital’s ownership in McDonald’s China to 52%.
Fast Food Holdings holds a 52% interest in Grand Food Holdings, which oversees McDonald’s operations in mainland China and Hong Kong. As part of the deal, Trustar Capital will also take on shareholder loans of $74 million associated with Fast Food Holdings.
Yichen Zhang, Chairman and CEO of Citic Capital, expressed optimism about the partnership, stating, “We have worked closely with Citic Ltd to drive McDonald’s China’s growth. We look forward to further collaboration to enhance the development of China’s economy and consumer market.”
This move follows a significant acquisition in 2017 when Citic Ltd, Citic Capital, and Carlyle Group purchased a majority stake in McDonald’s China from its parent company for $2.08 billion. In 2023, McDonald’s Corporation increased its stake in the venture to 48% by acquiring Carlyle’s minority share.
The deal is subject to regulatory approvals and is expected to close in the first quarter of 2024.
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