CJ pulls out of McDonald’s Korea race
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CJ Group says it has withdrawn from the bidding process for franchise rights for McDonald’s Korea.
The Korean multinational gave no reason for its loss of interest.
McDonald’s US is seeking buyers for 20 year franchise rights for its business in China, Hong Kong and Korea as it moves to a franchise partnership model outside the US.
CJ Group, whose interests include cinema chains in Asia and the Tous Les Jours bakery chain, said this week it had not entered the latest round of bidding for the business.
That leaves a consortium including Maeil Dairy Industry and another group with KG Group and NHN Entertainment Corp as the last two potential buyers on the shortlist.
McDonald’s hopes to earn about US$280 million from the Korean master franchise rights.
Questions & Answers
Q.Which other companies are still in the running to acquire McDonald's Korea franchise rights?
Which other companies are still in the running to acquire McDonald's Korea franchise rights?
A consortium involving Maeil Dairy Industry and another group that includes KG Group and NHN Entertainment Corp are the remaining potential buyers. These two groups are on the current shortlist for the franchise rights.
Q.What is the approximate value McDonald's expects to receive from the Korean master franchise rights?
What is the approximate value McDonald's expects to receive from the Korean master franchise rights?
McDonald's is hoping to earn around US$280 million from the sale of the Korean master franchise rights. This figure represents their financial expectation from the deal.
Q.Why is McDonald's selling its franchise rights in Korea, China, and Hong Kong?
Why is McDonald's selling its franchise rights in Korea, China, and Hong Kong?
McDonald's is seeking buyers for franchise rights as it is transitioning to a franchise partnership model outside the United States. This move indicates a change in its global business strategy.
Q.Has CJ Group provided a reason for withdrawing from the McDonald's Korea bidding process?
Has CJ Group provided a reason for withdrawing from the McDonald's Korea bidding process?
No, CJ Group did not offer any explanation for its decision to withdraw from the bidding process for the McDonald’s Korea franchise rights. The company gave no reason for its loss of interest.
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