The American fast food network Burger King declared buying of its Canadian rival Tim Hortons – a chain of restaurants, famous for tasty coffee and donuts – for 11.4 billion US dollars (12.5 billion Canadian dollars), Bloomberg informs. The deal was backed by Berkshire Hathaway investment company owned by Warren Buffett.
This purchase allows Burger King to make use of the world-famous coffee brand which can increase the amount of sold breakfasts greatly. Overall, the sales volume of above mentioned restaurant chain is expected to grow to 23 billion US dollars.
However, according to some analysts, it was a Burger King's wish to pay as less taxes as possible that caused this deal. The head office of the united corporation will be located in Ontario province, where the tax rates are much lower than in the USA.
The news about this contract has raised the Burger King shares' quotes by more the 20%. Tim Hortons, in its turn, has risen in price by19%.
The main shareholder of the united corporation is the investment company 3G, headed by Brazilian businessman Jorge Paulo Lemann, who has bought the controlling interest in American Heinz company together with Buffett. Buffett and his company won't manage the restaurant in spite of the funds invested in project.
