News

It’s official: Burger King is buying Tim Horton’s

It’s official: Burger King is buying Tim Horton’s

HAVE IT YOUR WAY: Burger King is buying Tim Horton's. Photo: Reuters

(Reuters) – Burger King Worldwide Inc BKW.N plans to buy Canadian coffee and doughnut chain Tim Hortons Inc THI.N THI.TO, the companies said on Tuesday, in a cash and stock deal to create the world’s third-largest fast food restaurant group, with sales of about $23 billion.

The companies had said on Sunday that they were in talks, and shares of both soared on Monday.

Tim Hortons shareholders will receive C$65.50 in cash and 0.8025 shares of the new company for each of their shares. Based on Monday’s close, the deal values Tim Hortons at C$94.05 a share.

Tim Hortons’ New York-listed shares rose 12 percent to $83.50 in premarket trading. Burger King was up 5 percent at $33.96.

Burger King Executive Chairman Alex Behring and Chief Executive Officer Daniel Schwartz will hold the same positions at the combined company. Tim Hortons CEO Marc Caira will be vice chairman.

The company is to be based in Canada, its largest market.

Investors and tax experts say the main reason for Burger King to move its domicile to Canada is to avoid having to pay double taxation on profits earned abroad, as the company would have to do if it remained in the United States.

Warren Buffett’s Berkshire Hathaway BRKa.N has committed $3 billion of preferred equity to finance the deal but will have no role in managing the business, the companies said.

3G Capital, Burger King’s majority owner, is expected to retain about 51 percent of the combined company.

(Reporting by Allison Martell in Toronto and Ashutosh Pandey in Bangalore; Editing by Savio D’Souza and Lisa Von Ahn)

Latest Stories

5 hours ago in Entertainment

Depp back as Mad Hatter in ‘Alice Through the Looking Glass’

22-overlay-3

The movie follows on from the 2010 box office hit "Alice in Wonderland," which starred Depp alongside Australian actress Mia Wasikowska as the titular heroine and Oscar nominee Helena Bonham Carter as the Red Queen.

5 hours ago in Lifestyle, National

Record number of Millennials are living with their parents

23-overlay-9

Living at home with parents is now the most common arrangement for people age 18-34.

5 hours ago in Weird

When police are chasing one of their own

15-overlay-12

This is one story that gives whole new meaning to the idea of a police chase.