News

Burger Kings in talks to purchase Tim Hortons

Tim Hortons Inc. and Burger King Worldwide Inc. have confirmed that they are in discussions regarding the potential creation of a global leader in the quick service restaurant business. The new publicly listed company would be headquartered in Canada, the largest market of the combined company.

August 25, 2014

Burger King confirmed today it is in talks to buy Tim Hortons Inc.

The new publicly listed company would be headquartered in Canada, the largest market of the combined company.

According to the AP, the tax-inversion deal would allow Burger King to decrease its U.S. tax bill.

3G Capital, the majority owner of Burger King, will continue to own the majority of the shares of the new company on a pro forma basis, with the remainder held by existing shareholders of Tim Hortons and Burger King.

Within this new entity, Tim Hortons and Burger King would operate as standalone brands, while benefiting from shared corporate services, best practices and global scale and reach, according to a joint press release. A key driver of these discussions is the potential to leverage Burger King's worldwide footprint and experience in global development to accelerate Tim Hortons growth in international markets.

The new company would be the world's third-largest quick service restaurant company, with approximately $22 billion in system sales and over 18,000 restaurants in 100 countries worldwide.