Would you like a Whopper... or maybe just a donut and a grilled Panini? The merger of U.S.-based fast food giant Burger King and Canada-based doughnut and coffee chain Tim Hortons seems like a match made in food heaven, but it’s taxes that are taking center stage of the deal.
On August 27, Burger King announced that it was purchasing Tim Hortons for roughly USD$11 billion, merging two of the largest food chains in North America. The deal, which was completed with the help of $3 billion in financing from Berkshire Hathaway, creates North America’s third-largest “quick service restaurant company,” behind McDonald’s and Yum! Brands, owners of Taco Bell and Pizza Hut.