n one of the largest single buy-outs of a fast-food franchise to date, China’s state-run organization Citic, Ltd.
bought over 80% of the holdings from McDonalds Corporation. The move comes at a time when Chinese/American relations have come under strain because of US opposition to Chinese territorial claims in the South China Sea, recently said by McDonald’s CEO Steve Easterbrook…
Yum China Holdings, another state-run organization that owns over 5,o00 KFCs and nearly 2,000 Pizzahuts, has been in fierce competition with McDonalds over the past few years, causing a sharp decline in sales that crippled the fast-food chain and creating the impetus for the sell-out.
McDonald’s started in China in the 1990s and was the first major western cuisine experience adopted in the region. The sell-out is valued at over 2.08 Billion dollars.
China has been notoriously aggressive in buying-up assets within–and across the globe. In an article published back on zero-hedge, China has partnered with Zillow to buy massive chunks of real-estate all over the United States. The Article goes as follows:
“China is on the way to becoming the dominant land owner in the entire country, and that is starting to alarm a lot of people. Do we really want a foreign superpower to physically own so much of our territory?”
One example has the State-run Businesses buying up Smithsfield Farms, a sudden move that aquired over 460 large farms at once… The article read:
“Smithfield Foods is the largest pork producer and processor in the world. It has facilities in 26 U.S. states and it employs tens of thousands of Americans. It directly owns 460 farms and has contracts with approximately 2,100 others. But now a Chinese company has bought it for $4.7 billion, and that means that the Chinese will now be the most important employer in dozens of rural communities all over America.”
China has a long history of censorship, human-rights violations, and totalitarianism… But out of the desperation of American Companies, fighting domestic over-regulation and impossible-trade barriers in the form of tariffs and excessive import tax, these desperate companies have been backed into the wall to sell out to the Super-power.
With this most recent purchase, it remains to be seen how our country is going to pay the price in the long-run.