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)

Recent Headlines

in Entertainment

Gary Busey, Tamar Braxton round out new ‘DWTS’ cast

17-overlay3

The 21st season of "Dancing With The Stars" promises to be a wild ride.

in Entertainment, Sports

Was ‘Concussion’ altered to avoid angering the NFL?

10-overlay1

Hacked Sony emails appear to show that the m arketing plans for the movie were positioned to focus on the story of a whistle-blower, rather than a condemnation of the sport.

in Viral Videos

How to make work better

21-overlay3

Some of these tips are actually helpful ... but mostly they're just hilarious.

in Music

Blake Shelton, Brad Paisley hitting the big screen

blakeshelton

The Band Perry, Darius Rucker, and Brett Eldredge are also featured in a film about the Grand Ole Opry.

in Music

Academy honors Bryan, Lynn

21-overlay1

Luke Bryan and Loretta Lynn are honored by their fellow musicians.