MIAMI -- Fast food giant Burger King confirmed that it is in talks to buy Canadian coffee-and-doughnut chain Tim Hortons (Oakville, ON).
The companies say the new publicly listed corporation, headquartered in Canada, would be the world's third-largest quick service restaurant company, with approximately $22 billion in system sales and more than 18,000 restaurants in 100 countries worldwide.
3G Capital, the majority owner of Miami-based Burger King, would continue to own the majority of shares of the new company on a pro forma basis, with the remainder held by existing shareholders of Tim Hortons and Burger King.
The companies say that Tim Hortons and Burger King would operate as standalone brands.
Days after the companies' announcement, the Wall Street Journal reported that billionaire investor Warren Buffett will help finance Burger King's takeover of the Canadian coffee and doughnut chain. Sources told the Journal that Buffett's company, Berkshire Hathaway, would provide 25% of the financing. Buffett is investing in the form of preferred shares, according to sources who spoke with the paper.
Tim Hortons Inc.'s new chief executive Marc Caira, who took the helm of the Canadian doughnut and coffee giant in May, said last fall that Tim Hortons is looking at vending machines as a way to expand into workplaces to add incremental sales. | READ MORE