McDonald's to sell Russia business to local operator
23 May 2022
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McDonald's Corp, the world's largest burger chain, is selling its restaurants in Russia to one of its current licensees, Alexander Govor, who would operate the restaurants under a new brand.
The new owner will rebrand them under a new name, ending more than three decades of the "Golden Arches" in the country, the fast-food company said on Thursday.
Chicago-based McDonald's owns 84 per cent of its nearly 850 restaurants in Russia. McDonald's on Monday became one of the biggest global brands to exit Russia following its February invasion of Ukraine. McDonald's said it will retain its trademarks.
In March, McDonald's temporarily closed its restaurants in Russia, including its first location in Pushkin Square, a symbol of American capitalism flourishing in the dying embers of the Soviet Union. McDonald's was a way for millions of people to sample western food and culture.
The new owner, Govor, has been a McDonald's licensee since 2015 and had helped the chain expand into remote Siberia, where he operates 25 restaurants.
McDonald's and GiD declined to disclose financial terms of the deal. McDonald's had said it would take a non-cash charge of up to $1.4 billion following a sale.
Govor will retain employees for at least two years on equivalent terms, McDonald's said, and will pay employee salaries in 45 regions of Russia until the closure of the sale, which is expected in the coming weeks.
Russia's industry and trade minister Denis Manturov said the deal followed a "long and difficult" negotiation process and the government would provide Govor all the necessary assistance to set up operations.
Interfax news agency's Spark database of Russian companies listed Govor as a co-owner of Siberian Distribution Centre, a rental company, and the Anzherskiy Oil Refinery. Govor also holds a 50 per cent stake in a small forestry company and 25 per cent in a fishing and hunting company, the database showed.
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