Burger King Buys Tim Horton’s – Could The Whopper Be Moving North?
According to the Associated Press, Burger King is buying Canadian coffee-and-doughnut chain Tim Hortons Inc. for about $11 billion, creating the world's third-largest fast-food company. According to the report, the corporate headquarters of the new company will be in Canada, a move that may help Burger King lower its taxes.
Burger King will still run its business out of Miami. The Associated Press reports that Burger King Worldwide Inc. will pay $65.50 Canadian ($59.74) in cash and 0.8025 common shares of the new company for each Tim Hortons' share. Tim Hortons' shareholders may choose either an all-cash payout or choose to receive stock in the new company. Tim Hortons' stock rose more than 10 percent in Tuesday trading. Burger King's shares fell slightly, the Associated Press reported.
News of the deal blew up on social media yesterday, with many people threatening to boycott the company if it moves to Canada. For its part, Burger King took to its own Facebook page to reassure customers that it plans to remain headquartered in the US, and will still be paying taxes.
We hear you. We’re not moving, we’re just growing and finding ways to serve you better.
As part of the announcement made today, both Burger King Corp. and Tim Hortons will continue to operate as independent brands. We’ll just be under common ownership. Our headquarters will remain in Miami where we were founded more than 60 years ago and business will continue as usual at our restaurants around the world.
The decision to create a new global QSR leader with Tim Hortons is not tax-driven – it’s about global growth for both brands. BKC will continue to pay all of our federal, state and local U.S. taxes.
We’re proud of the heritage of Burger King and will maintain our long-standing commitment to our employees, franchisees and the local communities we serve.
The WHOPPER isn’t going anywhere.
Many sources contradict Burger King’s statement. In a story in the Wall Street Journal, the paper suggests that the despite the company's reassurances, the move could be structured as a "tax inversion" that could lead to lower taxes for the company.
My question is if Burger King moves their headquarters north of the border would you think twice about going to eat at BK in the US.