On October 21st, CITIC Capital announced that its private equity investment business, Xinchen Capital, has signed an agreement with CITIC Group to acquire its stake in McDonald's China (including McDonald's mainland China, Hong Kong, and Macau businesses) for $430.3 million.
It is understood that after the transaction, CITIC Capital and its subsidiary Xinchen Capital will still be the controlling shareholders of McDonald's China, with their stake in McDonald's China further expanding from 42% to 52%.
CITIC Group Announcement
Zhang Yichen, Chairman and CEO of CITIC Capital and Chairman of the Board of Directors of McDonald's China, said, "As the controlling shareholder of McDonald's China, we will make every effort to promote McDonald's China to enter a new stage of development and achieve the vision of 'stronger, better, and smarter' stores. In the past few years, we have closely cooperated with CITIC Group to help McDonald's China's rapid development, and have achieved remarkable results in business expansion and sustainable development, winning wide recognition from investors and consumers. We look forward to continuing to maintain good business cooperation with CITIC Group in the future, and jointly contributing to the high-quality development of the Chinese economy and consumer market
In 2017, CITIC Capital and CITIC Group formed the CITIC Consortium and together with Carlyle, acquired 80% equity of McDonald's China for $2.08 billion. Among them, CITIC Group holds 52% of the equity of McDonald's China, officially becoming the controlling shareholder of McDonald's China. At that time, McDonald's (China) Co., Ltd. was renamed Golden Arches (China) Co., Ltd.
At the beginning of 2020, CITIC Capital acquired a 22% stake in McDonald's China from CITIC Group, further expanding its shareholding to 42%.
In 2023, McDonald's Global announced the acquisition of Carlyle's minority stake in McDonald's China, increasing its ownership to 48%.
After the completion of this transaction, McDonald's China will form an equity structure consisting of the CITIC Capital Consortium and McDonald's Global, with both parties holding 52% and 48% of McDonald's China's equity, respectively. The CITIC Capital Consortium (CITIC Capital and its subsidiary Xinchen Capital) will be the controlling shareholder.
