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 Headlines

14 hours ago in Sports

The weekend sports schedule

penscaps16120076416963

Here’s a look at some of the sporting events taking place this weekend.

14 hours ago in Sports

The best sports shots this week

goffdraft870850982276

A look at some of the biggest plays and best moments in sports this week.

17 hours ago in Sports

Reigning NL batting champ banned 80 games for doping

marlinsdeeREUTERS

Dee Gordon of the Miami Marlins was suspended 80 games without pay after testing positive for a performance-enhancing substance, Major League Baseball said.

21 hours ago in Sports, Viral Videos

Watch Richard Sherman pick up unsuspecting passengers

20-overlay-14

The Seattle Seahawks Super Bowl winner takes a side gig as a driver for Lyft.

22 hours ago in Sports

NFL: Raiders hope to move to Vegas

markdavisraiders16119669574354

Raiders owner Mark Davis says he wants to move the team to Las Vegas and is willing to spend a half billion dollars as part of a deal for a new stadium in the city.