McDonald's struggling in search for Chinese bidders

McDonald's is having difficulties in their search for a buyer for their Chinese franchises, according to a source for the Financial Times.

The sale of its China and Hong Kong franchise was announced earlier this year, and so far it has struggled to attract quality investors for the purchase, rejecting various bids from lower-level prospects.

The fast food company is intent on reducing its direct exposure in China after a series of food supply scandals have negatively affected its share price in the region.

Pressure from investors for better quality control in Asia has been reflected in the deal, said these people, who say some of the conditions, such as keeping management intact for two years and a restriction on taking the franchise public, limiting their options.

“We are making solid progress as we look for long-term strategic partners with local relevance who have complementary skills and expertise," said McDonald's.

Various up-and-coming Chinese firms have been linked with the sale, such as SanPower Group, who took over House of Fraser in the UK in 2014 withg limited success, as well as state-owned ChemChina.

The auction has now entered its second round of bidding, with McDonald's said to be unhappy with the quality of companies involved, lamenting the lack of top-level firms expressing interest.