Burger King plans Tim Hortons purchase

Burger King plans Tim Hortons purchase

Hamburger chain Burger King is allegedly in talks with Canadian Tim Hortons concerning a purchase. Both chains would continue to co-exist, but the American company would get some extensive tax benefits through the deal.

Huge tax benefit

 

If the deal gets approved, Burger King's main office would move to Canada, leading to huge tax benefits through "tax inversion".

 

A lot of American companies are moving their main office abroad, to pay lower taxes in the United States. This move draws a lot of criticism, as these companies usually already benefit from countless other tax benefits.

 

Third largest worldwide

 

If Burger King concludes the purchase of the Canadian coffee and donut chain, then they would become the third largest in the business. Tim Hortons' market value is 8.4 billion dollars (6.4 billion euro), while Burger King is worth 9.6 billion dollars (7.3 billion euro).

 

American chain Wendy's had already purchased Tim Hortons in 1995, but sold it in 2006. It might now, once again, fall in American hands.

 

Burger King has more than 13,000 stores worldwide, covering more than 100 countries. Tim Hortons on the other hand has more than 4,300 stores, mainly in Canada.

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