McDonald’s increases investment in RP unit

Encouraged by the new retail trade law which makes it easier for foreign-owned corporations to do business in the Philippines, Delaware-based McDonald’s Corp. intends to increase its investment in Golden Arches Development Co. by $1.5 million (roughly P80 million).

Golden Arches is a 50-50 joint venture between McDonald’s Corp., the world’s largest hamburger chain, and McGeorge Food Industries Inc. of businessman George Yang. Golden Arches leases and manages the properties that house the McDonald’s restaurants.

In a statement issued yesterday, McDonald’s said the move was spurred by the retail trade liberalization law which allows foreign firms to conduct retail operations in the country.

In light of this, McGeorge and Golden Arches decided to merge their operations to create a unified and more efficient single business.

At the management level, the officials said the structure will remain intact with Yang still at the helm as president and chairman of the merged unit. Yang will own the same percentage of the McDonald’s Philippines business even after the merger.

McDonald’s said the entire senior management team of McDonald’s operations in the Philippines will remain in place as before.

The merger application has already been filed with the Securities and Exchange Commission.

In 1981, McDonald’s opened its first store in the Philippines in Morayta in Manila’s University Belt. – Zinnia dela Peña