McDonald's is selling its China business

Fast food giant McDonald's has announced that it will sell a controlling stake in its China business to a group of investors led by state-owned Chinese conglomerate Citic. The deal is said to be worth as much as $2.1 billion.

McDonald's said in a statement that Citic and its investment management unit Citic Capital will acquire 52 percent of its business. Washington-based private equity firm The Carlyle Group, will own 28 percent.

McDonald's will retain 20 percent of the business, comprised of mainland China and Hong Kong operations and valued at up to $2.1 billion.

McDonald's noted that it will receive cash and new shares under the terms of the agreement, which will last 20 years. The deal, which still needs approval from regulators, is expected to be completed by mid-2017.

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SOURCE: [Taiwan News]