Burger King To Buy Tim Hortons For About $11 Billion

Posted: Updated:

MIAMI - Burger King is buying Canadian coffee-and-doughnut chain Tim Hortons Inc. for about $11 billion, creating the world's third-largest fast-food company.

The corporate headquarters of the new company will be in Canada, a move that may help Burger King lower its taxes. Burger King will still run its business out of Miami.

Burger King Worldwide Inc. will pay $65.50 Canadian ($59.74) in cash and 0.8025 common shares of the new company for each Tim Hortons share. This represents total value per Tim Hortons share of $94.05 Canadian (US$85.79), based on Burger King's Monday closing stock price. Alternatively, Tim Hortons shareholders may choose either all-cash or all stock in the new company.

Tim Hortons stock rose more than 10 per cent in Tuesday premarket trading. Burger King's shares fell slightly.

Also on HuffPost:

Tim Hortons-Burger King Mash-Ups
Share this
Current Slide

Suggest a correction

Around the Web

Courting Tim Hortons, Burger King Has Plans for a Fast-Food Empire

Investors cheer Burger King-Tim Hortons 'combo deal'

Burger King Wants to Buy Tim Hortons, Move to Canada, and Stop Paying U.S. ...

Burger King-Tim Hortons Merger Raises Tax-Inversion Issue

Canadians Decry Possible Burger King-Tim Hortons Merger: 'Save Timmies!'