The U.S.-based restaurant chain made it official Tuesday announcing that it agreed to merge with the Canada-based Tim Hortons restaurant chain. The deal, worth about $11 billion, will create the world's third largest quick service restaurant company with about $23 billion in sales and more than 18,000 restaurants in 100 countries.
The new global company will be headquartered in Canada, but each brand will be managed independently, with Burger King retaining its U.S. offices in Miami, the two companies said in a joint statement.
Warren Buffett's investment firm Berkshire Hathaway committed $3 billion of preferred equity financing for the deal, but will not have any participation in the management and operation of the business, the companies said.
The new base in Canada could allow Burger King (BKW) to reduce its U.S. tax bill -- a recent report by KPMG found that total tax costs in Canada are about 46% lower than in the U.S.