Behemoth Canadian donut shop Tim Hortons just got a whole lot bigger: the company just finalized a $12.5 billion merge with American chain Burger King. Now, with 18,000 outlets in more than 100 countries, the company is the third-largest fast food chain in the world. The merge will also save Burger King substantial tax money, as the Ontario corporate tax rate is 26.5% versus the United States' 35%. The companies have stated that any new headquarters will be located in Canada.
Double-double lovers don't need to worry about their favourite chain being changed much, though. The companies both will continue to operate independently. Marc Caira, the Tim Hortons CEO, released the following statement: "As an independent brand within the new company, this transaction will enable us to move more quickly and efficiently to bring Tim Hortons iconic Canadian brand to a new global customer base. At the same time, our customers, employees, franchisees and fellow Canadians can all rest assured that Tim Hortons will still be Tim Hortons following this transaction." Caira will now become vice-chairman and director, while Burger King chief executive Daniel Schwartz will head the new company.
The news is already creating a public stir. By end of day on Monday, each of the companies' stocks were up over 19%. Now, Tim Hortons is trending on Twitter as people share their reactions. A favourite? "If this is America's retaliation for Justin Bieber, well done."
· Burger King and Tim Hortons Ink Merger Deal [TG&M]
· Burger King Acquires Tim Hortons [-EN-]