McDonald's expands its minority investment with the Carlyle transaction in its China operation.

McDonald's is planning to increase its minority ownership from 20% to 48% of its China operation.

The massive fast-food chain gave Carlyle and Citic ownership of its eateries in Macao, Hong Kong, and the Chinese mainland in 2017.

Since then, McDonald's has quadrupled its number of outlets in China to over 5,500, making it the second biggest market in terms of total locations.

McDonald's is acquiring Carlyle's interest in its China operations, boosting its minority ownership from 20% to 48%.

For $2.1 billion, the fast-food juggernaut handed off ownership of its eateries in Macao, Hong Kong, and the Chinese mainland in 2017. 

It was a component of McDonald's larger plan to own fewer eateries and delegate management of individual sites to franchisees with local market expertise.

At that time, the state-owned investment company Citic acquired the bulk of the shares, with the massive private equity firm Carlyle purchasing 28%. McDonald's retained twenty percent of the market.

The specifics of the arrangement, which was announced on Monday, were not made public. If authorities accept the acquisition, it is anticipated to conclude in the first quarter of 2024. Citic still has a 52% share in the company.

In a statement, McDonald's CEO Chris Kempczinski stated, "We feel there is no better moment to simplify our structure, given the significant opportunity to capture more demand and further benefit from our fastest growing market's long-term potential."

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