McDonald's Corp has received multiple bids for its stores in China and Hong Kong. The offers have come from ChemChina, Beijing Tourism Group, and Sanpower.

The US-based fast food chain is likely to pocket up to $3 billion from the auction. Sanpower Group confirmed the submission of its joint bid with Beijing Tourism Group.

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McDonald's announced earlier this year that it would reorganize its business in Asia. The company is expected to rope in partners for owning the restaurants under the franchise framework.

The sale will also help McDonald's in dealing with rising competition from domestic players. The company is expected to offer a 20-year master franchise agreement to its buyers. The agreement may be extended by additional 10 years.

The deadline for first-round bids expired on June 20. In an email statement, Zou Yan, a Sanpower spokesman said, "In recent years, we are building more offline commercial stores, aiming to provide better shopping experience for consumers. McDonald's could provide new brand elements for us."

Sanpower also holds an 89 percent stake in House of Fraser, a British department store chain.

McDonald's is currently facing several issues in Asia. It has reported volatile earnings in last couple of years, weighing down its business. Its China and Hong Kong business reported $200 million in EBITA for financial year 2016.

The company is China's second biggest fast food chain, trailing Yum Brands, the parent company of the Pizza Hut and KFC chains.

The fast food chain is also considering selling its South Korea business in a separate deal.

TagsMcdonalds, Yum! Brands