What a whopper: Burger King completes £6.8bn deal with Tim Hortons
Burger King has agreed to create the world's third-largest fast food restaurant by buying Canadian coffee and doughnut chain Tim Hortons.
Under the deal, Tim Hortons shareholders will receive C$65.50 in cash and 0.8025 shares of the merged company for each share they own. That values the Canadian company at about C$12.5bn (£6.8bn). Shares closed 19 per cent higher on Monday, at $82.03.
The transaction means Burger King's hedge fund owner, 3G Capital, will have about 51% of the new company. Alex Behring, 3G's managing partner and Burger King's executive chairman, will become the new company's executive chairman and director, while Daniel Schwartz, Burger King's 33-year-old chief executive, will become group chief executive.
Marc Caira, Tim Horton's chief executive, assured its customers nothing will change.
Tim Hortons will still be Tim Hortons following this transaction, including our core values… and fresh coffee.
To be fair, the brand is no stranger to being owned by a burger joint: in 1995 it was bought by Wendy's, before it was floated in New York and Toronto in 2006.