Kirkland & Ellis represents CITIC Limited (SEHK:00267), CITIC Capital Holdings and The Carlyle Group (NASDAQ: CG), which announced today along with McDonald’s Corporation (NYSE: MCD) 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 new company will become the largest McDonald’s franchisee outside the United States. The total consideration payable by the new company to acquire McDonald's mainland China and Hong Kong business is up to US$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. More information on the transaction is available here.
The Kirkland team was led by corporate partners Jesse Sheley, Pierre Arsenault and Xiaoxi Lin in Hong Kong, and technology and IP transactions partner Jeffery Norman and tax partner Mike Carew in Chicago.