Love is in the air this bright Monday morning, and it smells like Whoppers and coffee: Burger King and Canadian coffee chain Tim Hortons have confirmed that they’re courting the idea of a merger, sending pulses racing, hearts soaring and the stock market into palpitations. Ah, young merger-related love.
The twosome are discussing a deal that would make the combined companies into the third-largest quick service restaurant in the world, reports the Chicago Tribune, sending shares of Tim Hortons up 17% this morning in New York. Burger King got a 16% boost as well, because that’s what corporate love is about. Stocks.
Burger King and Tim Hortons confirmed they’re talking about a merger, one which would be based in Canada due to the lower corporate taxes corporations can enjoy there. This would be an inversion transaction, a way to get BK out of the United States proper, and quickly — the deal could come to fruition in just a few days, sources tell the Chicago Tribune.
If the two do become one, they’d each still maintain their own brands inside the bigger company, while pooling shared corporate services. Meaning no wacky cheese burger flavored coffee or French fry doughnuts. Actually, you never know.
The next step? Either there will be a merger and the two companies will announce it, or nothing else will happen and no one will comment further, the two companies said.
Burger King, Tim Horton shares spike amid merger talks [Chicago Tribune]
by Mary Beth Quirk via Consumerist
No comments:
Post a Comment