Is Burger King Moving to Canada?
Burger King, the Miami-based fast-food behemoth, is strongly considering purchasing the Canadian coffee chain Tim Hortons in a deal that would essentially merge the two food-service companies.
The deal is sometimes called a corporate inversion, which is "used by companies that receive a significant portion of their income from foreign sources, since that income is taxed both abroad and in the country of incorporation. Companies undertaking this strategy are likely to select a country that has lower tax rates and less stringent corporate governance requirements," according to Investopedia.
The Wall Street Journal states that if the two companies could work out a deal, the result would be a newly created company that would become the third-largest quick-serve restaurant in the world. Combined, the two companies are worth around $18 billion.
Most alarming to Miami is the fact that Burger King's headquarters could move to Canada. The world's second-largest fast-food hamburger chain was founded in Miami in 1954. Its headquarters, located on Blue Lagoon Drive near Miami International Airpot, employs around 2,420 people in their company restaurants and restaurant support centers. No word on whether those employees would be offered similar roles in a new location or if those positions would be lost.
There is also no information on whether Burger King restaurants would begin serving Tim Horton products. According to the company website, Burger King operates in more than 13,000 locations serving more than 11 million guests daily in 97 countries and territories worldwide. Tim Hortons was founded in 1964 in Ontario and has more than 3,000 restaurants across Canada and 600-plus locations in the United States.
Although there is no set time frame for a merger, Wall Street Journal sources say a deal "could be struck soon."