Local groups line up to bid for McDonald's China franchise

Two Chinese companies are considering making a joint bid with the US buyout firm KKR & Co LP for McDonald's Corp's franchise rights in China, in what would be a big bet on the future of the country's fast food sector.

China National Chemical Corp (ChemChina) and New Hope Group Co Ltd are among the potential suitors, and have asked to turn in their first-round offers by next week, people familiar with the matter said.

China Resources Enterprise Ltd and the investment firm Bain Capital LLC are also showing interest in bids which would total $2 billion, said the sources, who preferred to be anonymous.