Citic-Carlyle near deal to buy McDonald's China assets: source

December 1, 2016 8:28 AM EST

People walk by a McDonald's store in downtown Shanghai July 31, 2014. REUTERS/Carlos Barria/File Photo


Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.

(Reuters) - A consortium led by private-equity firm Carlyle Group (NASDAQ: CG) and Chinese conglomerate Citic Group Corp has neared a deal to buy McDonald's Corp's (NYSE: MCD) stores in China and Hong Kong for up to $3 billion, a source with direct knowledge of the matter said.

The deal is likely to be signed before Christmas, the source said.

Reuters had reported in October that U.S. buyout firms Carlyle and Bain Capital LLC had been the front runners among the bidders for the fast-food giant's China assets.

McDonald's in March said it was reorganizing operations in Asia, bringing in partners as it switches to a less capital-intensive franchise model.

The company hired Morgan Stanley (NYSE: MS) to run the sale of about 2,400 restaurants in China and Hong Kong.

Financial Times reported earlier on Wednesday that Bain Capital had dropped out of the race, and that a group led by Citic Group and Carlyle were the front runners to the deal.

Carlyle declined to comment, while McDonald's was not immediately available for a comment.

(Reporting by Denny Thomas in Hong Kong and Gayathree Ganesan in Bengaluru; Editing by Anil D'Silva)



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In






Related Categories

Mergers and Acquisitions, Reuters

Related Entities

Citi, Morgan Stanley, Bain Capital, The Carlyle Group

Add Your Comment