Burger King eyes marriage with Tim Hortons
The companies, which are similar in market size, confirmed they were discussing a takeover of Tim Hortons by Burger King. The new entity would be based in Canada, which has a lower corporate tax rate than the US.
Miller Tabak analyst Stephen Anderson said he did not expect any competition hurdles as the firms serve different rapid-service segments. However, he warned that the proposed deal could face a backlash on both sides of the border.
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Hide AdIn Canada, critics are likely to be unhappy that the well-known Tim Hortons brand would once again fall into foreign hands, while US-based opponents are likely to attack Burger King’s plan to domicile in Canada to cut its tax burden.
A tie-up would give the burger giant access to popular coffee products that it could add to its 7,400-plus restaurants across North America, along with a doughnut and coffee chain brand that is growing in the US.