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)

Local Headlines

in Local

Estherville Fake $20

20bill

The Estherville Police Department has received a counterfeit $20 bill from a local financial institution...

in Local

Spencer Schools 2015-16 Calendar On Hold

adminbuilding1240

The Spencer School Board is still weighing their options on the first day of school for next year...

in Local

Law Enforcement Reports

lawenforcement1240

Drug and alcohol charges were filed following a late Monday evening traffic stop by the Clay County Sheriff's Office...

in Local

SMU 2015 Rebate Forms Available

SMU 1240 Image

2015 rebate forms are now available...

in Local

Fitzpatrick To Be Resentenced

fitzsentence

Christopher Fitzpatrick is currently serving a 45-year prison term for his role in the fatal beating of another man...