McDonald’s has struck a deal to ramp up its stake in its China business to just under 50% and expressed confidence in its growth prospects in the world’s second-largest economy.
The move contrasts sharply with the prevailing trend of multinational corporations reeling back investments in China or even exiting the market altogether due to geopolitical and economic challenges.
The deal to acquire investment firm Carlyle’s 28% holding in the burger chain’s China business, which also includes stores in Hong Kong and Macau, will see McDonald’s stake rise to 48%. A consortium led by China’s state-backed conglomerate CITIC has controlling ownership with a 52% stake.
