Burger King is buying Canadian coffee-chain Tim Hortons Inc. for about $11 billion, creating the world’s third-largest fast-food company.
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.
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.
This represents total value per Tim Hortons share of $94.05 Canadian (US$85.79), based on Burger King’s Monday closing stock price.
Alternatively, Tim Hortons shareholders may choose either all-cash or all stock in the new company.
Tim Hortons stock rose more than 10 percent in Tuesday premarket trading. Burger King’s shares fell slightly.