South Korea’s leading dairy and beverage producer Maeil Dairies Industry Co. is considering a bid for acquiring McDonald’s outlets in Korea in partnership with U.S. private equity fund Carlyle Group. Its joining would add fuel to the competition for McDonald’s restaurants that has been already heated up after Korea’s largest food and beverage group CJ Group and a consortium formed between KG Group and NHN Entertainment declared to join the bid race.

According to sources from the industry on Thursday, Maeil named JP Morgan as its adviser and began to review its acquisition plan. Maeil is considering joining the race as a strategic investor at the recommendation of Carlyle that wants to acquire all McDonald’s outlets in Korea, China and Hong Kong.

Early this year, McDonald’s US headquarters appointed Morgan Stanley as its adviser to turn all 2,800 Asian outlets into a franchised network as part of its efforts to restructure its holdings in Asia. The U.S. fast food giant plans to receive royalties in return for the operating right of its Asian shops.

Morgan Stanley is expected to select a preferred negotiator before Chuseok, the Korean Thanksgiving holiday, at the earliest.

Maeil is said to be planning to add McDonald’s to its restaurant business in hopes that expanding its restaurant business would compensate the poor performance of its flagship dairy business. The company runs Chinese restaurants and premium coffee chains, but their influence remains weak in the local restaurant market.

Owning McDonald’s outlets is also expected to create significant synergy with Maeil that has accumulated extensive knowhow in producing Cheese and beverage that can be sourced to McDonald’s chains.

By Seo Jin-woo, Jeon Kyung-woon

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]