Chipotle shares jumped on Thursday after a surprise $1.5 billion acquisition agreement was announced by Mexican company Chipotle to keep the popular Mexican food chain in Mexico.
The deal, which was first reported by Bloomberg, was announced on Thursday by the company’s Mexican president, Enrique Guzman, and its chief executive, Dan Cathy.
The Mexican deal is the latest to strengthen Chipotle ties with Mexico, as the Mexican government has been pursuing a crackdown on the nation’s fast-food industry.
The Mexican government’s crackdown on Mexico’s fast food industry has resulted in tens of thousands of arrests and hundreds of deaths.
Chipotle, which has been in the news over its burritos, also is known for offering a menu of vegetarian and vegan options.
The company is not yet clear how much it plans to pay Chipotle for the acquisition.
The deal, announced on the same day as Chipotle reported a better-than-expected third-quarter earnings, was made possible by a $2 billion loan from China-based First Global Credit and Investment.
The loan will help finance Chipotle and other food brands to expand in Mexico, said Cathy, who is in charge of the company.
Chipotle has been on a roll recently as its stock has soared in recent months.
Shares are up nearly 6% in 2016.
Last year, the company raised $1 billion to fund expansion in the United States and Mexico.
In a statement, Chipotle said it is focused on expanding into Mexico and its expansion plans will not change as a result of this deal.
Read more about Chipotle here:Chipotle will invest more than $2B in Mexico