Blaming tough competition for losses in its restaurant franchise unit, Beijing Enterprises Holdings said it is getting out of the fast-food business. The Hong Kong-listed investment arm of the Beijing city government said it is selling 65.46% of Beijing Enterprises (Dairy), which holds a 55% stake of Shanghai A-share listed Beijing Sanyuan Foods, an operator of McDonald's restaurants in Beijing and Guangdong, to state-owned Beijing Sanyang Group for RMB323.6m (US$39m). Beijing Enterprises' group parent will pick up the remaining 34.54% for RMB237.4m.
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