UK-based beverages group Diageo has warned that the terms of sale of its wholly-owned fastfood subsidiary Burger King are under review.
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Diageo agreed the sale of Burger King in July to a financial consortium of Texas Pacific Group, Bain Capital and Goldman Sachs Capital Partners. The deal was dependent on the fastfood restaurant chain’s performance, but a slump in sales and aggressive pricing practices of Burger King’s competitors has meant that the sale is now under threat of collapse.
“Diageo has been informed by the buying group that, in the light of the conditions existing in Burger King’s markets and the buying group’s judgment of their potential effects under the agreement…the buying group wants to discuss with Diageo potential revisions to the terms of the July agreement,” The company was quoted as saying by Reuters.
