Tim Hortons, the coffee and donut chain that is loved and adored by all Canadians with maple syrup running through their veins. Burger King, the home of the Whopper that has found its way home into the hearts of Americans in the home of the brave. But will it soon be establishing a more prominent presence in our home and native land?
Last week, a merger deal was announced between the iconic Canadian coffee shop, Tim Hortons, and the American fast-food restaurant, Burger King. The CEO of Tim Hortons, Marc Caira, accepted the takeover offer of 12.5 billion dollars proposed by 3G Capital, the Brazilian company who owns Burger King. Effectively, this would make them the third largest fast-food restaurant company in the entire world. Together, they would own close to 18, 000 store locations in nearly 100 countries.
The Brazilian 3G Capital would control 51 per cent of the new company, Burger King shareholders would have possession of 27 percent, and the 22 percent that remains would be allocated to Tim Hortons shareholders.
Burger King has tentative plans to move its Miami headquarters across the border to Canada. By doing this, they would be able to lower their tax rate as Canada boasts a significantly lower tax rate than its American neighbor. Tim Hortons will continue to wave its flag of Canadian pride and stay based in Oakville, Ontario.
While this agreement has left many Canadians fretting over the future of their double doubles and maple dips, the developments of this deal appear to be quite favourable for Timmies.
The cash value of its shares has gone up all the way to $94 a share. In addition, by teaming up with Burger King, the Canadian company will receive exposure to the international stage. Besides showing the rest of the world that they have been missing out on the deliciousness of Timbits, this would also help the double double as well as other classic Tim Hortons favourites find new fans within the global community.
Currently, there are no plans for the two restaurants to merge products and sell each other’s menu items. You can rest assured that you won’t be hearing “Fries with that?” anytime soon at your local Timmies or getting your creamy Ice Capps at a Burger King.
The new joint company has yet to be named, but it will be led under the direction of Daniel Schwartz, the current CEO of Burger King. Caira would be taking on the role of director and vice-chairman of the new company.
With all these upcoming changes, will our beloved Timmies be able to continue being one of Canada’s crowning glories or will it be mercilessly flattened by the weight of the Whopper? For now, the future is steeped in uncertainty.
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