The Canadian-American company Restaurant Brands International Inc. (RBI) has entered into an agreement to sell a controlling stake in the Chinese division of the Burger King chain. This is reported in the press release of the RBI.
As part of the deal, Restaurant Brands is creating a joint venture with the Chinese investment company CPE in order to attract investments in the Chinese division of Burger King China and strengthen its position in the local market. CPE intends to invest $350 million in Burger King China and increase the number of Burger King outlets in the region from 1.3 thousand to more than 4 thousand by 2035.
Upon completion of the deal, CPE will control 83% of Burger King China shares, while RBI will control the remaining 17%.
The deal is in line with RBI's strategy of optimizing its highly franchised business to open new restaurants in China, as well as marketing, menu updates, and business expansion. In February, RBI bought out the shares of previous Burger King China partners for $158 million and announced plans to attract a new Chinese partner to boost growth in the local market.
CPE (formerly CITIC Private Equity) is a Chinese investment company with headquarters in Beijing. CPE was separated from the structure of CITIC Securities into an independent company.
Restaurant Brands International Inc. is an American—Canadian company managing chains of coffee shops and fast-food restaurants Burger King, Rorhews Louisiana Kitchen and Tim Hortons. The headquarters is located in Toronto (Canada).
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