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Burger King in talks to buy Tim Hortons

CityNews | posted Monday, Aug 25th, 2014

timhortons-featured

It could be a whopper of a deal.

Burger King is in talks to buy Tim Hortons Inc. and form a new publicly listed company that would be based in Canada.

They said in a statement Sunday night that Canada would be the largest market of the combined company.

The statement said 3G Capital, the majority owner of Burger King, would continue to own the majority of the shares of the new company on a pro forma basis, with the remainder held by existing shareholders of Tim Hortons and Burger King.

The companies say Oakville-based Tim Hortons and Miami-based Burger King would operate as standalone brands while benefiting from shared corporate services, practices as well as global scale.

“A key driver of these discussions is the potential to leverage Burger King’s worldwide footprint and experience in global development to accelerate Tim Hortons growth in international markets,” the statement reads.

The statement adds that the new corporation would be the world’s third-largest quick service restaurant company, with approximately $22 billion in system sales and over 18,000 restaurants in 100 countries worldwide.

The companies say they will not comment further unless there is a deal.

Tim Horton’s is well known for its coffee which is a high margin area where U.S. fast food giants have raced to grab market share.

Recently Burger King has been adding more coffee items to its menus in order to catch up with its rival McDonald’s.

This is not the first time Tim Horton’s has been owned by an American burger chain. For nearly 15 years the company was owned by Wendy’s after a deal was struck with founder Dave Thomas in 1995.

With files from The Canadian Press

Comments

  • Randy Sambles says:

    I wish we could keep all that it Canada the way it is/was. We are being Americanized right before our eyes. There aren’t any good Canadian stores around anymore. And now thanks to the almighty dollar we are going to loose the one great canadiana left. Stop selling out to
    the americans. Keep what is Canadian in our yard.

  • Tim Pursel says:

    A very sad day for Tims.soon they will be fliping burgers

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