Canadian Packaging

Burger King and Tim Hortons linemates?

Reports suggest that Burger King, the second-largest fast-food burger chain, and Tim Hortons made join up to form the third-largest fast-food restaurant company in the world.


August 25, 2014
by Canadian Packaging Staff

Recent rumblings suggest that U.S. burger giant Burger King is in talks to purchase the Canadian icon coffee and doughnut chain in Tim Hortons in a move that would make the combined new company the third-largest fast-food company in the world.

If the plan goes through, it would have a $22-billion sales system in place with over 18,000 restaurants in over 100 countries.

The skinny:
Burger King’s majority owner is 3G Capital, and when, as opposed to ‘if’, the sale goes through, it would continues to own the majority of the company’s shares, with the remaining ownership shares being held by the existing shareholders of both Burger King and Tim Hortons.

3G Capital is an American multi-billion dollar, global investment firm focused on maximizing the potential of brands and businesses.

The plan is that Tim Hortons and Burger King would remain as standalone companies, but that the Miami, Florida-based Burger King would move to Canada to avoid some difficult U.S. tax laws.

It’s all part of a tax-inversion plan that is a legal way for U.S. companies to suddenly become, in this case, Canadian, by purchasing a company there. As a Canadian company, Burger King would only be required to pay a 15 per cent corporation tax… as opposed to the 35 percent tax to the U.S. government.

Back in 1995, Tim Hortons was purchased by Wendy’s International Inc., but maintained its corporate headquarters in Delaware, until 2009 when it moved its headquarters to Oakville, Ont. Canada, becoming once again a Canadian company – legally… but still American-owned.

Time will tell if Burger King can have it their way.

Image of Tim Hortons shop courtesy of Tim Hortons.


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