China’s CITIC approves sale of remaining McDonald’s stake

China’s state-owned CITIC Ltd. said on Monday it had approved the exit of its investment in McDonald’s operations China and Hong Kong by selling its remaining 19.23 per cent stake for $430.3 million.

The sale involves transferring the stake in Fast Food Holdings, which owns 52 per cent of the holding company managing McDonald’s businesses in mainland China and Hong Kong, to a unit of Chinese private equity firm Trustar Capital Partners.

This move comes four years after a CITIC unit previously attempted to sell a portion of its Fast Food Holdings stake for an estimated $312 million.

In 2017, McDonald’s sold a majority stake in its China and Hong Kong operations to CITIC, CITIC Capital (now Trustar), and Carlyle for $2.1 billion.

In 2023, McDonald’s increased its stake in the Chinese business to 48 per cent by acquiring Carlyle’s 28 per cent share, valuing the stake at $6 billion.

Attribution: Reuters

Subediting: Y.Yasser