McDonald’s (MCD.N) announced that it has reached an agreement to increase its share in its China company to just under 50%, expressing confidence in the growth potential of the burger giant in the world’s second-largest economy. The deal would bring McDonald’s holding in its China business to just under 50%.

This action starkly contrasts the widespread pattern of multinational firms cutting back on their investments in China or perhaps leaving the market entirely due to the complex geopolitical and economic environment there.

The transaction to acquire the investment firm Carlyle’s (CG.O.) 28% interest in the burger chain’s China business will see McDonald’s stake climb to 48%. McDonald’s China operation also includes its restaurants in Hong Kong and Macau. The state-backed conglomerate CITIC (0267. HK) is the consortium’s leader, holding a 52% controlling ownership interest in the business.

In a statement released on Monday, McDonald’s CEO Chris Kempczinski stated, “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.” “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.”

Although the financial parameters of the acquisition have not been published, two people familiar with the transaction have stated that the deal values the China operation at approximately $6 billion.

This is a significant increase from McDonald’s value in 2017 when the company reached an agreement to sell 80% of the firm to CITIC, its investment arm CITIC Capital—now known as Trustar Capital—and Carlyle for up to $2.1 billion. The goal of the American company at the time was to achieve quick expansion while preserving a significant portion of its own money.

However, this valuation is significantly lower than the estimate of up to $10 billion that Carlyle and Trustar had at one point been pursuing as part of their efforts to form a so-called continuation fund, according to earlier statements made by various sources.

Private equity firms can more quickly sell in existing ventures by utilizing a type of investment vehicle known as a continuation fund. Private equity firms developed these funds.

The sources did not wish to be identified and stated they were not authorized to speak to the media about the agreement. The fast food chain McDonald’s did not comment on the valuation amount. Carlyle did not want to provide a statement either.

The number of McDonald’s restaurants in China has more than doubled to 5,500 since 2017, and the country has overtaken Japan as the chain’s second-largest market. The company aims to have over 10,000 outlets in operation throughout China by 2028.

According to the statement released by the company, the company’s overall revenues have increased by more than thirty percent since September of this year.

According to the sources, McDonald’s made an unsolicited approach to purchase Carlyle’s stake in the China operations within the past few weeks, and a deal was swiftly reached as a result.

“Having a stronger investment position should give them a better voice in making sure that the growth that they anticipate out of that marketplace occurs,” said Jim Sanderson, an analyst at Northcoast Research. “Having a stronger investment position should give them a better voice in making sure that the growth that they anticipate out of that marketplace occurs.”

In August, Reuters reported that Trustar Capital intended to build a continuation fund to enable the Chinese private equity company to sell its ownership in McDonald’s China. This would allow Trustar Capital to continue its investment in McDonald’s China. In contrast to McDonald’s, the American meat and processed food manufacturer Tyson Foods (TSN.N.) reportedly intends to sell its poultry business in China. This information comes from many sources.

Reckitt Benckiser (RKT.L), a British consumer goods manufacturer, sold its China infant formula and child nutrition business to investment firm Primavera Capital in 2021 for an enterprise value of $2.2 billion. Primavera Capital bought the business.