April 26, 2024

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[THE INVESTOR] US-based private equity firm Carlyle Group is seeking a new partner to jointly acquire McDonald’s Korea after local firms dropped out of the race, according to industry sources on Nov.3.

“The group is looking for new tie-ups, now that its partner Maeil Dairy is out of the picture,” one source said, declining to be identified. Carlyle Group could not be reached for comment.

All the bidders -- CJ Group, consortiums formed of KG Group and NHN Entertainment, and Maeil Dairy Industry and Carlyle respectively -- that had earlier expressed their intent to acquire McDonald’s have dropped out.
 

Another source projected the acquisition deal could take longer than expected. “There seems to be disagreements regarding the price, and McDonald’s master franchise system,” he added.

CJ Group reportedly had problems with the master franchise system, which it considered to be restrictive. KG Group and NHN Entertainment gave up after failing to meet the acquisition price expectations.

Most recently, Maeil dropped its bid following intensive negotiations with McDonald’s, according to those close to the matter.

Maeil had teamed up with Carlyle, and had reportedly proposed up to 600 billion won (US$526.28 million) as the acquisition price. The CEO Kim Sun-hee had personally given a presentation to McDonald’s.

With Maeil out of the picture, Carlyle will now have to seek out new partners in order to attain its goal of acquiring all three of McDonald’s Asian businesses in Korea, Hong Kong and China.

Based in the US, Carlyle is largely owned by its three founders, and is 7.5 percent owner by Abu Dhabi’s Mubadala Development Company. The California Public Employees’ Retirement System holds another 5.5 percent stake.



By Kim Ji-hyun (jemmie@heraldcorp.com)