Asia

McDonald's sells China business in deal worth up to $2.1B

Fast food giant McDonald's says it is selling a controlling stake in its China business to a group of investors led by state-owned Chinese conglomerate Citic in a deal worth up to $2.1 billion.

The company said in a statement Monday that Citic and its investment management unit Citic Capital will acquire 52 percent of the business.

Another partner, Washington-based private equity firm The Carlyle Group, will own 28 percent.

McDonald's will keep the remaining 20 percent of the business, comprised of mainland China and Hong Kong operations and valued at up to $2.1 billion.

McDonald's will get cash and new shares under the terms of the agreement, which is for 20 years.

The deal, which still needs approval from regulators, is expected to be completed by mid-2017.