Binding offers sought for McDonald’s China
In this article (5)
Selected bidders for McDonald’s China and Hong Kong, including China Cinda Asset Management and dairy producer Beijing Sanyuan Foods, have been asked to make binding offers.
Also invited earlier to submit a second-round bid are Sanpower Group, which owns UK department store House of Fraser, and GreenTree Hospitality.
McDonald’s is selling 20-year mass franchise rights in China and Hong Kong, which could fetch $2 billion.
Illinois-based McDonald’s has hired Morgan Stanley to run the sale of about 2800 restaurants in China, Hong Kong and South Korea along with 20-year franchise rights. The South Korean McDonald’s business is also being sold, with local cinema and cafe operator CJ Group reportedly the front-runner at this stage.
McDonald’s announced in March that it was reorganising in Asia by bringing in partners to own restaurants within the franchise business. Competitor Yum Brands, which has the KFC and Pizza Hut chains, is also restructuring in China.
Questions & Answers
Q.Which specific regions are included in the sale of McDonald's franchise rights mentioned in the article?
Which specific regions are included in the sale of McDonald's franchise rights mentioned in the article?
McDonald's is selling 20-year mass franchise rights for its businesses in China and Hong Kong. The South Korean McDonald's business is also being sold separately, with CJ Group reportedly a front-runner.
Q.What is the estimated value of the franchise rights being sold for McDonald's in China and Hong Kong?
What is the estimated value of the franchise rights being sold for McDonald's in China and Hong Kong?
The sale of 20-year mass franchise rights for McDonald's in China and Hong Kong could fetch an estimated $2 billion. This figure relates specifically to these two regions.
Q.Which companies have been invited to make binding offers for McDonald's in China and Hong Kong?
Which companies have been invited to make binding offers for McDonald's in China and Hong Kong?
Selected bidders asked to make binding offers include China Cinda Asset Management, dairy producer Beijing Sanyuan Foods, Sanpower Group, and GreenTree Hospitality. These are for the China and Hong Kong operations.
Q.Why is McDonald's selling off its businesses in Asia?
Why is McDonald's selling off its businesses in Asia?
McDonald's announced in March that it was reorganising its operations in Asia. This involves bringing in partners to own restaurants within its franchise business structure across the region.
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