Burger King Worldwide Inc., the second largest U.S. fast food chain, is in talks to acquire Canada based Tim Hortons Inc and move its headquarters to Canada and take advantage of lower-tax country.
The merged company would have $22 billion in sales and more than 18,000 restaurants in 100 countries, according to the statement released by the company.
The merger of two companies will create the third largest fast food chain and Burger Kinf plans to relocate to Canada to take advantage of its lower corporate rate of 26.5% compared to 40% rate in the U.S.
The two chains will operate as a standalone brands and 3G Capital, which has a 70$ stake in Burger King, would be the majority owner in the company.
Tim Hortons, based in Oakville, Ontario, stock jumped 3% to C$68.72 and the coffee and doughnut operator has 4,500 restaurants.