3G Capital Strikes Deal With Burger King

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LOS ANGELES (GaeaTimes.com)- Burger King, the global chain of hamburger fast food restaurants and 3G capital has announced yesterday that the companies have entered into a definite merger agreement. The companies have sealed a deal which says that Burger King would be acquired by 3G in a transaction valued at approximately $3.3 billion. The Burger King officials have said the new deal will favor the companies plans for expansion in Asia and Latin America. However, 3G capital executives were unavailable for comments.

A reputed media source reported that 3G Capital and Burger King has struck the deal after the latter suffered an economic downturn as in the last week Burger King’s profit fell 17 percent and revenue also declined 1 percent. John Chidsey, the CEO of the second largest US fast food chain said in his recent interview that the deal will also bring 3G Capital’s experiences and contacts abroad which in turn will be beneficial for the company itself. The CEO hopes that these contacts will accelerate the horizon of the company. However, John Chidsey declined to comment on the strategies, costs, possible layoffs of the Burger King and 3G Capital.

The CEO has also mentioned that Burger King’s headquarter will remain in Miami. Previously Burger King was hit harder by the economic crisis as its competitor McDonald’ captured the market completely. A reputed media source reported that the statistics of both the companies show that McDonald’s recorded a profit of $ 4.3 billion whereas Burger King could manage to make a profit of $2.2 billion last year. Burger King CEO John Chidsey previously said that the company looks forward to partnering with 3G Capital, whose proven track of records as investors will “strengthen” Burger King and its “franchisees” all over the world.