Tuesday 21 March 2023

TIM HORTONS/BURGER KING – Ottawa gives Burger King go-ahead for $11 billion tie-up

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Burger King and Canadian leading coffee shop chain Tim Hortons expect to complete their $11 billion tie-up on Dec. 12, after a shareholder vote early this week.

The federal government approved the takeover of Tim Hortons Inc. by Burger King Worldwide Inc. on Thursday.

Industry Canada, the federal department reviewing the mega-merger, said in a statement it won’t oppose the deal, provided Burger King agrees to about half a dozen “commitments” including a pledge to maintain “100 percent” of existing employment at Canadian franchises and operating Tims as a “distinct” brand apart from Burger King.

The merger has already received the approval of of U.S. regulators.

Tim Hortons shareholders are expected to vote on the proposal at a special meeting on Dec. 9.
Miami-based Burger King Worldwide Inc. agreed in August to buy Tim Hortons in a cash-and-stock combination that creates the world’s third-largest quick-service restaurant company.

The combined company will also establish its headquarters in Oakville, Ont., where Tim Hortons is currently based, and “maintain significant employment levels” at the office.

It will list on the Toronto Stock Exchange and maintain Tim Hortons as a distinct brand, without any co-branding in Canada or the United States.

Burger King has said its chief aim is to grow the combined company by taking the Tim Hortons brand to countries around the world — a model it has succeeded at with its own restaurants in recent years.

Some critics had warned that Burger King’s owners, Brazil-based 3G Capital, would implement deep cost cuts at Canada’s biggest coffee chain.

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