Burger King and Tim Hortons in talks

Written By Unknown on Senin, 25 Agustus 2014 | 20.24

25 August 2014 Last updated at 12:04

Burger King has said it is in takeover talks with Tim Hortons, the Canadian coffee and doughnut chain.

A merger would create the world's third-largest fast-food combine, one with a stock market value of about $18bn (£10.9bn; 13.6bn euros).

The companies confirmed the talks late on Sunday and said the new group would be headquartered in Canada, where corporate taxes are lower.

Burger King's majority shareholder, 3G Capital, would stay in overall control.

The New York and Rio de Janeiro-based investment firm bought Burger King in 2010 for about $3.3bn and floated the company in 2012, holding on to nearly 70% of the shares.

If a deal goes ahead, the remaining shares will be distributed between the current shareholders of Burger King and Tim Hortons.

According to reports, the companies will retain their separate brand identities but save costs by sharing corporate services.

Combined, Burger King and Tim Hortons would have an estimated revenue of $22bn a year from around 18,000 restaurants in 100 countries.

Tim Hortons used to be owned by US fast-food chain Wendy's, before being spun off as a separate company in 2006.


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