Dongwon Group "Withdraws from Acquiring McDonald's Korea"

Unable to Narrow Differences Throughout Negotiation Process Including Sale Amount

Dongwon Group is withdrawing from the bid to acquire McDonald's Korea.

According to the food industry on the 27th, Dongwon Industrial, the holding company of Dongwon Group, has decided to halt the acquisition process of McDonald's Korea that it had been pursuing. This will be formalized through a public announcement regarding the withdrawal from the sale later that afternoon at Dongwon Industrial.

A McDonald's store in Seoul
[Image source=Yonhap News]

Both companies refrained from disclosing specific reasons, but it is reported that they failed to narrow differences throughout the negotiation process, including the sale price. The asking price presented by McDonald's Korea was around 500 billion KRW, while Dongwon Industrial reportedly offered an amount slightly over 200 billion KRW.

Earlier, Dongwon Industrial had participated alone in the preliminary bidding for McDonald's Korea in January to expand its dining business and had been conducting due diligence. This is the second time McDonald's Korea has been put up for sale since 2016.

The initial failed negotiation involved a consortium formed by the global private equity firm Carlyle and Maeil Dairies, which collapsed due to Maeil Dairies' withdrawal. Currently, the headquarters holds 100% of McDonald's Korea's shares.

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