McDonald’s to sell Russian fast food restaurants to Alexander Govor
McDonald’s Corporation said that it has signed a sale and purchase agreement to offload its Russian business to its existing licensee Alexander Govor.
The financial terms of the deal were not revealed by the American fast food company. The deal follows its earlier announcement of withdrawing from the Russian market in protest of the war on Ukraine.
As per the agreement, Alexander Govor will acquire the full restaurant portfolio of McDonald’s and operate the fast food restaurants in Russia under a new brand.
Alexander Govor has been serving as a McDonald’s licensee since 2015 and has operated 25 fast food restaurants in Siberia.
The deal, which is subject to regulatory approval and certain other conditions, is expected to close in the coming weeks.
According to McDonald’s, the sale and purchase agreement lets employees to be retained for at least a couple of years, on equivalent terms.
Alexander Govor has also agreed to meet the salaries of corporate employees who work across 45 Russian regions until closing of the deal, along with funding existing liabilities to suppliers, utilities, and landlords.