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Citic rings in better-than-expected 2016 net profit, looks to close McDonald’s deal by July

State-backed conglomerate planning more spin-offs and listing of other group assets, says chairman

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Citic was part of consortium that bought an 80 per cent stake in McDonald’s mainland and Hong Kong business for US$2.08 billion in January. Photo: AFP
Citic, China’s largest state-backed conglomerate, said it plans to complete the acquisition of McDonald’s mainland and Hong Kong businesses by the middle of this year.
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“We are waiting for the necessary approvals, and expect the same to come sometime between June and July,” chairman Chang Zhenming said during the company’s annual results briefing in Hong Kong.

Two anti-monopoly complaints have been filed by a Chinese consultancy to the ministry of commerce against the McDonald’s deal, Reuters reported last month.

“We are not familiar with the details of the complaints. The ministry is dealing with it,” Chang said.

In January, Citic, Citic Capital, and US private equity firm Carlyle Group jointly announced the purchase of an 80 per cent stake in McDonald’s mainland and Hong Kong businesses for US$2.08 billion.

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“There is still huge growth potential for McDonald’s, particularly in [China’s] tier 3 and 4 cities,” Chang said that Citic would not depute top executives to manage the McDonald’s business.

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