CITIC Limited ("CITIC"), CITIC Capital Holdings ("CITIC Capital"), The Carlyle Group ("Carlyle") and McDonald's Corporation ("McDonald's") announced the formation of a partnership and company that will act as the master franchisee responsible for McDonald's businesses in mainland China and Hong Kong for a term of 20 years. The total consideration payable by the new company to acquire McDonald's mainland China and Hong Kong business is up to USD 2.08 billion. The consideration will be settled by cash and by new shares in the company issued to McDonald's. After completion of the transaction, CITIC and CITIC Capital will have a controlling stake of 52%, while Carlyle and McDonald's will have interests of 28% and 20%, respectively. The partnership will use its combined expertise and resources to accelerate growth in McDonald's business through new restaurant openings, particularly in tier 3 and 4 cities, and to improve sales performance in existing restaurants. The focus will be on key areas such as menu innovation, enhanced restaurant convenience, retail digital leadership and delivery. It intends to add over 1,500 restaurants in China and Hong Kong over the next five years.

Mr. Yichen Zhang, Chairman and CEO of CITIC Capital, will serve as Chairman of the board of the new company. Mr. X.D. Yang, Managing Director and Co-Head of the Asia buyout team of The Carlyle Group, will serve as Vice Chairman of the board of the new company.