The consortium of private equity firms buying Diageo’s Burger King is struggling to close the US$2.26bn deal.
A consortium led by Texas Pacific Group agreed to buy Burger King in July. However, The New York Times reports that the lenders backing the buyout, J.P. Morgan Chase & Co. and Citigroup’s Salomon Smith Barney, have postponed bank meetings.
The fastfood chain’s profits have pulled back in recent months, following the July agreement, giving TPG and its equity partners further pause for thought. It has been suggested that the consortium may even try to renegotiate the purchase price, citing a material adverse change in its buyout agreement.