Burger King has confirmed the acquisition of Tim Hortons, the Canadian coffee and doughnut chain, for about $11bn, following an approval from the boards of directors of both companies.
The deal will create the world's third-largest fast-food chain, with a market capitalization of roughly $18bn and annual sales to the tune of $23bn.
The new entity would have 18,000 restaurants in 100 countries. Burger King's majority shareholder, 3G Capital, will own about 51% of the merged company.
Under the terms of the deal, Tim Hortons shareholders will receive $59.74 in cash and 0.8025 shares of the new company for every share they own.
This is seen as a so-called tax inversion scheme, an increasingly common legal manoeuvre that allows US companies to take on the nationality of another country by buying a company there and lower tax burden in its home base.
Founded in 1954, Burger King operates over 13,000 locations in nearly 100 countries and territories across the globe while Tim Hortons operates more than 3,500 system wide restaurants in Canada and over 850 in the US.
