The US fast-food giant McDonald's will sell a controlling stake in its China and Hong Kong business for up to $2.08 billion to a consortium including state-owned Citic and the Carlyle Group, it was announced Monday. The deal is said to be part of an international turnaround plan by the Golden Arches as it struggles with sluggish growth at home. Citic Limited, Citic Capital Holdings, Carlyle Group and McDonald's will form a company that will act as a franchisee for the chain's business in mainland China and Hong Kong for 20 years, the companies reportedly said in a joint statement.
This development in global economy gives credence to reports that China, world's second largest economy, is set to surpass the US, world's largest economy by the first half of the 21st century. The top US brands including the McDonald's, have fully understood the potential of China's economy.
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