Meanwhile, the CITIC Consortium, through the CITIC Capital, will continue to hold its controlling ownership stake of 52%.
After the completion of the transaction, McDonald's will remain a minority partner while raising its stake from 20% to 48% ownership.
"We believe there is no better time to simplify our structure, given the tremendous opportunity to capture increased demand and further benefit from our fastest growing market's long-term potential," said President and CEO Chris Kempczinski.
The business has generated systemwide sales growth of more than 30% in the market year-to-date since September 2019.
The deal is contingent upon regulatory approvals and is expected to close in the first quarter of 2024.
Price Action: MCD shares are trading higher by 0.59% at $277.38 on the last check Monday.