Carlyle, Bain to battle for McDonald's China assets as TPG pulls out

Thu Oct 27, 2016 5:39am EDT
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HONG KONG (Reuters) - Carlyle Group LP (CG.O: Quote) and Bain Capital LLC are the only major global buyout firms left bidding for McDonald's Corp's (MCD.N: Quote) restaurants in China and Hong Kong after TPG Capital Management LP [TPG.UL] pulled out, people close to the matter said on Thursday.

The two private equity firms, which have partnered with conglomerate CITIC Group Corp [CITIC.UL] and hotelier GreenTree Hospitality respectively, will compete with Chinese bidders for assets worth up to $3 billion, said the people, who declined to be identified because details of the deal are not public.

The people did not give a reason for TPG's decision to pull out.

Chinese bidders include real estate firm Sanpower Group Co Ltd [SPGCL.UL] and mini-market operator Wumart Stores Inc, Reuters previously reported.

Carlyle, Bain and TPG declined to comment. McDonald's did not respond to a Reuters request for comment outside regular U.S. business hours.

McDonald's in March said it was reorganizing operations in Asia, bringing in partners as it switches to a less capital-intensive franchise model. It hired Morgan Stanley (MS.N: Quote) to run the sale of about 2,400 restaurants in China and Hong Kong.

(Reporting by Elzio Barreto and Julie Zhu; Editing by Christopher Cushing)

A woman walks past a McDonald's outlet in Hong Kong in this July 25, 2014 file photo.  REUTERS/Tyrone Siu/Files Photo