Carlyle among final two bidders for McDonald’s China franchise in deal worth over US$2b
US private equity firm outbids other interested buyers for McDonald’s 2,200 restaurants in China
US private equity fund Carlyle Group may be one of the two final bidders left standing in a competitive auction process that will see the US$178 billion fund buy out US fast food chain McDonald’s China franchise of 2,200 restaurants for more than US$2 billion.
The deal comes as McDonald’s, which first expanded into China via an outlet opened in Shenzhen in 1990, announced in March it was looking to restructure its holdings in Asia. The fast food chain is seeking to reduce its physical ownership of restaurants in Asia, and would like to convert its strategy into an asset-light, franchise-focused model.
The current sale will give the successful buyer a 20-year master franchise agreement, which comes with options to extend for 10 years upon expiry.
Morgan Stanley was appointed as its advisor as the company is concurrently selling down its chain of 2,800 restaurants across China, Hong Kong and South Korea.
The bidding process may have now entered the final stage, as Carlyle, along with one other unnamed multinational company, have outbid other interested US and mainland buyers in the preceding auction rounds, the New York Post reported Tuesday, citing anonymous sources.
Previously, media reports said there were up to a dozen interested bidders.