19 May 2022 15:57

McDonald's agrees to sell Russian business to licensee Alexander Govor

MOSCOW. May 19 (Interfax) - McDonald's Corp. (SPB:MCD), the world's largest chain of fast food restaurants, has entered into an agreement to sell its Russian business to Alexander Govor, who is the company's licensee and has operated 25 outlets in Siberia since 2015, McDonald's said in a statement.

The agreement is subject to certain conditions, including regulatory approval, and is expected to close in the coming weeks, McDonald's said.

The Federal Anti-monopoly Service said it had not yet received a request for clearance for the deal.

Under the terms and conditions of the agreement, Govor is acquiring the fast food chain's entire restaurant portfolio and will further develop it under a new brand.

The agreement also stipulates that Govor retain staff and their respective working conditions for at least two years. Govor has also agreed to finance the salaries of the corporate employees working in 45 Russian regions until the agreement closes. Moreover, Govor will also finance existing liabilities to suppliers, property owners, and utilities.