14 June 2016
China National Chemical Corp. and New Hope Group Co. are among companies considering bids for McDonald’s Corp. operations in the world’s most populous nation, people with knowledge of the matter said.
Buyout firm KKR & Co. is considering teaming up with a Chinese firm to make a joint bid for the mainland China franchise rights, which could fetch about $2 billion, the people said, asking not to be identified because the information is private. Potential suitors were asked to submit first-round offers by next week, according to the people.
McDonald’s is revamping its ownership structure in Asia as it pursues an international turnaround plan put in place after Chief Executive Officer Steve Easterbrook took the reins last year. The Big Mac purveyor said in March it is seeking franchise partners in mainland China, Hong Kong and South Korea to invest fresh capital and localize decision making.
The U.S. fast-food company hired an adviser to help identify partners, it said in March. It also plans to add 1,500 outlets to the more than 2,800 it has in mainland China, Hong Kong and South Korea over the next five years.