Burger King is closer than ever to taking over Tim Hortons for an estimated price of $11 billion (U.S.) after the federal Industry Minister of Canada, James Moore, assented to the move under some strict stipulations.
Chief among the stipulations: The two companies are not to combine their brands at any location in Canada or the United States. In a statement, Moore said Burger King must “manage Tim Hortons as a distinct brand.” The newly merged companies will also shared a headquarters in Oakville, Ontario, and at least 50% of the Tim Hortons board is to be Canadian. Burger King also promised to expand in the U.S. and other global markets at an exponentially faster rate than Tim Hortons was originally planning. Burger King also agreed to maintain the employment levels at Tim Hortons franchises in Canada.
The move is still pending a shareholders vote. The AP reports:
Tim Hortons Inc. shareholders are scheduled to cast their ballots Dec. 9 at a special meeting. The company’s board has unanimously recommended that they vote for the deal.
When the deal goes through, it will create the world’s third-largest quick service restaurant company.DM