3G Capital to combine Tim Hortons and Burger King

August 26
09:00 2014

Tim Hortons Inc. (TSX/NYSE: THI) and Burger King Worldwide Inc. (NYSE: BKW) have confirmed that they are in discussions regarding the potential merger to create “a global leader in the quick service restaurant business.”

3G Capital, the majority owner of Burger King, will 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 new company would be the world’s third-largest quick service restaurant company, with approximately $22 billion system sales and over 18,000 restaurants in 100 countries worldwide.

Tim Hortons and Burger King would operate as standalone brands, while benefiting from shared corporate services, best practices and global scale and reach. 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 new publicly-listed company would be headquartered in Canada.

Tim Hortons and Burger King will hold a media call at11:30 AM EDT today, August 26, 2014, hosted by Marc Caira, President and CEO of Tim Hortons, and Alexandre Behring, Chairman of Burger King, to discuss the companies’ announcement.

Tim Hortons and Burger King transaction would be the second so-called tax-inversion deal involving Canadian companies in recent months.

In June 2014, Auxilium Pharmaceuticals, Inc. (NASDAQ: AUXL) and QLT Inc. (NASDAQ: QLTI; TSX: QLT) agreed to merge. QLT will remain incorporated in British Columbia and will be renamed “New Auxilium.” Auxilium shareholders would own approximately 76% of the combined entity while QLT shareholders would own approximately 24%.

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