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Burger King acquires Tim Hortons Restaurants

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Burger King, one of the best- known names in fast food dining, has sealed a deal to purchase Canada- based Tim Hortons, Inc., according to an article published by Bloomberg.com on August 26, 2014.

The cost of the deal is approximately $11.4 billion or $12.5 billion in Canadian dollars and will create the third- largest fast food operation. In addition, Burger King has said that, as part of the deal, it will move its corporate offices to Canada supposedly for tax purposes, a move that has been met with controversy and even a call for a boycott from politicians and others. Burger King says the acquisition has nothing to do with tax avoidance, but critics maintain otherwise.

Tim Hortons is known for its coffee and doughnuts and is, in fact, the largest seller of these food and drink items in its native land. Burger King has stated its intention to use the coffee and doughnut business to help the company grow. Tim Hortons already enjoys a presence in grocery stores where it sells packaged coffee. By acquiring a company with an established foothold in the retail sector, it opens the door for Burger King to possible sell its own products in grocery stores.

Combining Burger King with Tim Hortons will create a fast- food enterprise with more than $23 billion in sales and more than 18,000 restaurants in 100 different countries. The synergy created by the merger should help Burger King improve efficiency, reduce cost, and expand its global footprint ever further.

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