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Burger King to Merge with Tim Hortons, Will Create 3rd-Largest Fast Food Company in the World

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Burger King and Tim Hortons announced on Sunday night that the two companies are in cahoots to complete a merger. If the deal is successful, it would create the world’s third-largest fast food company, with $22 billion in system sales and over 18,000 restaurants deep in 100 countries.

In a joint statement, BK and Timmies touted that they would benefit “from shared corporate services, best practices and global scale and reach” while still operating as “standalone brands.” In short, BK, now based in Miami, will reap the benefits of it’s neighbors’ lower corporate income tax rates — 15% in Canada vs 35% in the US.

Unsurprisingly, BK shares soared 20% from $6.51 to $33.57 in afternoon trading and Tim Hortons 24% to $77.63. With the coffee-and-donut behemoth’s market value of $8.4 billion and the burger joint’s $9.6 billion, together, the companies are worth $18 billion. Their combined value and reach, coupled with Canada’s favorable corp. taxes, are no doubt making investors thirsty for the tie-up.

However, Canadians are furious over an American chain encroaching on their beloved Timmies. Personally, if they try to pull some whopper-flavored timbits shit, I’m going to cry myself to sleep and lament this pitiful world.

H/T WSJ

By Charisma Madarang

Charisma has an undying love for gritty literature and drinks coffee like water. She also hails from Toronto, Canada and is a die-hard Maple Leafs fan, sigh.

8 replies on “Burger King to Merge with Tim Hortons, Will Create 3rd-Largest Fast Food Company in the World”

At least McDs pays taxes to the government that bridges the gap between a minimum and a living wage for their employees. Think about it: BK will pay taxes to Canada, pay it’s employees minimum wage, and the US government will give those employees the other half of the money they need to exist. Ingenious? Yes! Unethical? Yes!

I wasn’t even commenting on any part of the potential tax evasion bits but at the same time I don;t care. If the US cared more about keeping businesses here, they’d be more competitive with taxes and we’d have more and varied small businesses not getting forced choked as much.

No, my comment has more to do with McDonalds has something to be scared about now in the morning sector. I like it when big corporations get shoved out of the comfort zones they thought they were safe in for a long time.

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