updated - September 25, 2020 Friday EDT
Tim Hortons Inc. shareholders approved the purchase of Burger King Worldwide on Tuesday, Dec. 9. The vote paves way for the completion of the $11.4 billion deal by the end of the week.
Restaurant Brands Internationals will be the name of the new company. Combined, they will the third-largest restaurant operator in the world. The company is in-charge of the 180,000 restaurants that have $23 billion sales worldwide and will deal for the New York Stock Exchange and Toronto Stock Exchange using the ticker symbol "QSR."
Daniel Schwartz, CEO of Burger King and Restaurant Brands International, said in a statement, “We are excited to unveil the name of our new global company, which conveys our mission to create the world’s leading global restaurant business through a strong commitment to our franchisees and a consistent focus on serving guests around the world.”
Burger King believes that Tim Hortons can expand globally. Both brands will operate separately as the new company will be located in Canada. This has sparked controversy in U.S. as the deal was done for the sake of tax benefits.
The Miami-based burger chain hopes to expand quickly with Tim Hortons. The Canadian brand has 3,665 locations in Canada, while less than 900 units in the U.S. The deal was done last week with Canadian regulators assuring that Burger King would expand faster both in the U.S. and in the international market.
In a statement made by Marc Caira, Restaurant Brands International will signify exciting opportunities for the two companies with plans of international expansion.
“As part of Restaurant Brands International, Tim Hortons will remain an independent, iconic Canadian brand, but with significant opportunities to accelerate our brand development around the world,” said Caira.
The deal is expected to be completed on Friday, as the deal is subject to customary conditions. The Ontario Superior Court is still to hold for final order and to approve the arrangement by Thursday.
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