(Reuters) — Carlyle Group LP (CG.O) and Bain Capital LLC are the only major global buyout firms left bidding for McDonald’s Corp‘s (MCD.N) 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) to run the sale of about 2,400 restaurants in China and Hong Kong.