Brazil-based private equity firm 3G Capital reportedly is considering making a competing bid for Panera Bread, which has agreed to be acquired by JAB Holdings in a pending $7.5 billion deal.
3G Capital, which is backed by Warren Buffett and owns the Burger King and Tim Hortons chains, is seriously weighing a rival bid for Panera and has hired investment bank Lazard to look into the matter, sources told the New York Post. The source told the newspaper that 3G has the capacity to make a rival bid.
A bid for Panera would put 3G and JAB, which have been seen as allies and have invested in each other’s deals, in direct competition. The two firms both have been in acquisition mode, with 3G recently agreeing to buy Popeyes Louisiana Kitchen and JAB acquiring Krispy Kreme Doughnuts last year.
The deal is expected to close in the third quarter, subject to approval from Panera’s shareholders and regulatory approvals.
Read more: St. Louis Business Journal