Several sovereign wealth funds are considering investing in McDonald's China.
After 7 years of establishment, is "McDonald's" welcoming a new shareholder?
Several sovereign wealth funds from the Middle East and China are in talks to jointly invest in McDonald's business.
According to sources familiar with the matter, companies including Mubadala Investment, Qatar Investment Authority, and CIC are considering a minority shareholder role in investing in McDonald's.
However, sources also revealed that the negotiations are progressing slowly, and it may take 1-2 months to reach a potential agreement, with valuation remaining a key point of discussion.
China is McDonald's second-largest market, with over 5,500 McDonald's restaurants and plans to reach 10,000 restaurants by 2028.
Major shareholder CITIC Group has been holding a 52% stake in McDonald's through its controlling stake in Trustar Capital. Recently, they have been exploring various investment options for Trustar Capital to seek divestment, such as transferring equity to a new investment company.
In 2017, McDonald's sold about 80% of its business for $2.08 billion. The consortium of CITIC, PE giant Carlyle, and McDonald's held 52%, 28%, and 20% stakes respectively. McDonald's management company was officially renamed "Golden Arches (China) Co., Ltd."
In November last year, McDonald's agreed to acquire Carlyle's 28% stake in its Chinese business, increasing McDonald's stake in its Chinese business to 48%, valued at around $1.8 billion.