Burger King Merged by 3g

3G Capital, Inc

Group 9

Hsuan-Ti Kou

Xinyun Song

Xiwei Yang

Yi-Ying Tsai

Group 9

Hsuan-Ti Kou

Xinyun Song

Xiwei Yang

Yi-Ying Tsai

Part I

Overview

Burger king is a global chain of hamburger fast food restaurant headquartered in Miami, United States. On September 2, 2010, it agreed to be acquired by 3G Capital, which is a capital investment firm operated by Brazilian investors, for $3.3 billion. In fact, Burger King entered the agreement and plan of merger with two of 3G Capital’s wholly-owned subsidiaries—Burger King Worldwide Holdings, Inc.(BKW), formerly known as Blue Acquisition Holding Corporation, and Blue Acquisition Sub, Inc.(Merger Sub) a wholly owned subsidiary of BKW established as an acquisition vehicle for the purpose of acquiring Burger King. This transaction seemed to be the biggest restaurant acquisition in the past few years. Before the acquisition, TPG Capital, Bain Capital and Goldman Sachs Capital in total hold 31% shares of the Burger King. After the acquisition, 3G will hold 100% shares of the Burger King and in addition, the common stock of the Burger King will no longer be listed for trading on the New York Stock Exchange, which in other words means that the Burger King “Goes Private.”

The Burger King’s sales growth has slowed down for a few years because customers consumed less during the U.S. economic recession. The Burger King’s most often consumers are the young and the males. These people suffered a higher rate of unemployment, which made Burger King fell far behind to its largest rival, McDonalds. So one of the motives of the acquisition is that the Burger King can get use of the experiences 3G have in the oversea expansion. The 3G Capital had a long history of operating different company to international expansion. With the help of 3G, Burger King can open more stores overseas such as Asian and South Africa, which can catch up with its rival, McDonalds. From the 3G Capital’s perspective, the acquisition can also...