McDonald’s struggles to attract buyers for China business

McDonald’s is struggling to attract the caliber of bidders it envisioned in the sale of its China and Hong Kong franchise, according to the Financial Times. The company is seeking to reduce its direct exposure to China, where food supply scandals have hurt its share price, and to halt capital expenditure in the region. But McDonald’s is also looking to fortify its reputation with the sale, which has moved into a second round of bidding and could fetch $2bn-$3bn. Pressure from investors for better quality control in Asia has been reflected in the terms of the deal, said those close to the deal, who say some of the conditions, such as keeping management intact for two years and a restriction on taking the franchise public, are onerous.