Citic and Carlyle $1.7 billion acquisition of controlling stake in McDonalds

Private acquisition

$ 1.7 billion




  • Chinese state-backed conglomerate Citic and US private-equity firm Carlyle Group have acquired a controlling stake in the China and Hong Kong operations of McDonalds for $1.7 billion. 
  • The fast-food household name is in the middle of a reorganisation in a market where it’s striving to catch up with more nimble rivals.
  • The buyers will acquire an 80% holding in a deal valuing the business at $2.08 billion, while the Oak Brook, Illinois-based McDonald’s will keep the remaining stake; under the agreement, Citic and Citic Capital Partners will jointly take a 52% stake, while Carlyle will hold 28%.
  • The new owners plan to add over 1,500 restaurants in the next five years in smaller Chinese cities.
  • McDonald’s and rival Yum China Holdings, which operates the KFC and Pizza Hut brands in the mainland, are among retailers that are trying to fend off domestic competition and attract middle-class Chinese consumers who increasingly demand high-quality and healthier dining options.
  • As McDonald’s streamlines its sprawling global operations, the fast-food giant is also looking at further deals in markets such as South Korea, Japan and South East Asia.

Adam Majeed - Regional editor



Deal type:

Private acquisition

Practice area:

Private equity

Industry sector:

Food and beverage


Party: McDonalds (Seller)

Party: CITIC Ltd (Buyer)

Party: Citic Capital Partners (Buyer)