McDonald’s to sell Russia business to current licensee

McDonald’s Corp (MCD.N) on Thursday reached a deal to sell its Russia restaurants to its current licensee Alexander Govor and said the outlets would operate under a new brand.

The burger chain earlier this week became one of the biggest global brands to exit Russia, laying out plans to sell all its restaurants, while saying it would retain its trademark in Russia.

The deal with Govor provides for employees to be retained for at least two years on equivalent terms and the buyer would pay the salaries of corporate employees in 45 regions of the country until closing.

The company has operated in Russia for more than 30 years and owns about 84per cent of its nearly 850 restaurants in Russia.