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

11 hours ago in National, World

Mayors from big cities around globe push climate initiatives

parisclimate276422967025

The mayors of major cities from around the world are banding together to fight global warming by investing in public transportation and electric cars, planting trees and switching to solar energy.

14 hours ago in National

Fired up by Sanders, Democrats shift left on health care

sanders16125621842918

As the Obama administration is counting down its final year in office, many Democrats are finding less to like about the president's health care law.

14 hours ago in National

U.S. to boost airport staffing to manage long security lines

airportREUTERS

With airlines worried that long security lines may discourage summer travelers, the U.S. government said it will add airport staff and bomb-sniffing dogs and ramp up pre-screening enrollment efforts.

14 hours ago in Sports

Furyk to make PGA Tour return next week in Charlotte

10-overlay-2

Jim Furyk makes his season debut as he joins an elite field boasting 31 of the top 50 players in the current FedExCup standings.

15 hours ago in Sports

Dallas judge tells quarterback Manziel not to contact former girlfriend

manzielindictmentAP

Former Cleveland Browns quarterback Johnny Manziel made his first appearance in a Dallas court on Thursday on a charge of assaulting his former girlfriend, and the judge told him to keep away from her.