According to various unconfirmed reports, Burger King Worldwide Inc – the second largest burger chain in the US – is in talks to buy Tim Hortons Inc and relocate its headquarters to Canada.
The acquisition of Canada’s biggest seller of coffee and doughnuts would make Burger King the world’s third-largest fast food chain.
One clear reason for the move is taxation. The Canadian corporate tax rate is 26.5% (compared with 40% in the US), according to KPMG.
Burger King 70% majority owner 3G Capital would continue to own most of shares in the new company, with the remainder held by shareholders of Tim Hortons and Burger King. Reports suggest that Miami-based Burger King and Ontario-based Tim Hortons would continue to operate as separate brands but would share corporate services.
The new company would have 18,000 restaurants in 100 countries with sales of around $22bn.
Source: Bloomberg/ABC/Daily Mail
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