Burger King owner said to be in talks to buy Popeyes

Takeover deal could be made this week

NEW YORK Restaurant Brands International Inc., the owner of Burger King, is in advanced talks with Popeyes Louisiana Kitchen Inc. about a takeover of the friedchicken chain, according to people familiar with the matter.

Negotiations between the firms are ongoing, and a transaction could be announced as early as this week, said the people, who asked not to be identified. Talks could still fall apart, the people said. Popeyes has a market value of about US$1.37 billion, while Restaurant Brands is worth US$25 billion.

The companies held talks in the summer but were unable to reach an agreement at the time, the people said. Burger King renewed its interest in Popeyes late last week and made an offer that was mainly cash, one of the people said. Popeyes then contacted possible counter bidders over the weekend, however no competitive offer materialized, the person said.

A spokeswoman for Popeyes declined to comment. A representative for Restaurant Brands didn’t immediately respond to a request outside of regular business hours.

Dealmaking in the restaurant industry picked up last year, with a total of US$7.3 billion of acquisitions announced, compared with US$4.2 billion in 2015, according to data compiled by Bloomberg. For instance, JAB Holding Co. agreed to buy Krispy Kreme Doughnuts Inc. for US$1.35 billion in May, while Heineken NV teamed up with Patron Capital to bid for U.K. pub operator Punch Taverns Plc’s shares in December.