Burger King to buy Canada's Tim Hortons for S$14.4 billion
Published on Aug 27, 2014 12:18 AM
TORONTO (Reuters) - Burger King Worldwide Inc plans to buy Canadian coffee and doughnut chain Tim Hortons Inc in a C$12.64 billion (S$14.4 billion) cash-and-stock deal that would create the world's third-largest fast-food restaurant group.
With roughly US$23 billion (S$28.7 billion) in combined annual sales and more than 18,000 restaurants in 100 countries, the new entity would have a vast global footprint and huge growth potential, the companies said in a joint statement on Tuesday.
The deal is not expected to run into any antitrust hurdles, given the different fast-food segments the two companies serve, but it is expected to generate some anger in the United States because of Burger King's plan to move the combined entity to Canada.
The companies had confirmed on Sunday that they were in merger talks, and shares of both soared on Monday. The deal values Tim Hortons at C$94.05 a share, a 37 per cent premium to Friday's close of C$68.78 in Toronto.
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