McDonald's Corp has received more than half a dozen bids for its China and Hong Kong stores, including offers from Beijing Tourism Group.
McDonald’s Corp has received more than half a dozen bids for its China and Hong Kong stores, including offers from Beijing Tourism Group, Sanpower and ChemChina, in an auction that could fetch up to $3 billion, people familiar with the matter said.
Sanpower Group, a technology and real estate firm, said late on Wednesday it has submitted a joint bid with Beijing Tourism Group for the stores.
Buyout firms including Bain Capital, TPG Capital and Carlyle Group are also participating in the auction with a view to teaming up with Chinese strategic bidders, the people said.
The US fast food company announced in March it was reorganising its Asian operations by bringing in partners who would own the restaurants within a franchise business. Competitor Yum Brands is also restructuring its China business by spinning it off ahead of a likely IPO next year.
The planned sale of China units by McDonald’s and Yum indicates they are seeking local partners who could help ward off growing competition from domestic rivals and also better manage public perception in the wake of food-safety scares that hit the two fast-food giants in the last few years.
“Given the difficulties Western chains have had recently with public perception, local players have become a serious competitive threat,” said Elizabeth Friend, consumer foodservice analyst at Euromonitor International.