HONG KONG (Reuters) - Fast-food giant McDonald's Corp (MCD.N) has received final offers from at least three bidding groups for its China and Hong Kong outlets, with global private equity firms Carlyle Group (CG.O) and TPG Capital teaming up with Chinese partners for the business worth up to $3 billion, sources told Reuters.
Carlyle has joined with Chinese state conglomerate CITIC Group, while TPG has teamed up with mini-market operator Wumart Stores on their separate bids, said the sources, who declined to be named.
Real estate firm Sanpower Group also made an offer for the assets. The company has previously said it was teaming up with Beijing Tourism Group.
TPG and Carlyle declined to comment on their final bids, while CITIC, Wumart and Sanpower didn't return requests for comment during a holiday in mainland China.
McDonald's reiterated a previous comment that it is making progress in finding a long-term partner for the assets.
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2 comments:
Everyone should ask this question: Why is McD's getting out of the hamburger business and reducing its risk by re-franchising it's owned stores?
Refranchising is an industry trend primarily driven by Wall Street. Publicly held restaurant companies no longer want to be in the restaurant business. It's a sign the industry is overbuilt and saturated. Growth will have to come from corporations preserving their capital by letting franchisees handle all of the cap-ex for remodels etc.
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