This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-28926275
The article has changed 4 times. There is an RSS feed of changes available.
Version 2 | Version 3 |
---|---|
Burger King in takeover talks with Tim Hortons | Burger King in takeover talks with Tim Hortons |
(about 17 hours later) | |
Burger King has said it is in takeover talks with Tim Hortons, the Canadian coffee and doughnut chain. | Burger King has said it is in takeover talks with Tim Hortons, the Canadian coffee and doughnut chain. |
A merger would create the world's third-largest fast-food combine, one with a stock market value of about $18bn (£10.9bn; 13.6bn euros). | A merger would create the world's third-largest fast-food combine, one with a stock market value of about $18bn (£10.9bn; 13.6bn euros). |
At close of the US stock market on Monday, Burger King's shares were up by 19.5%, and those in Tim Hortons by 19%. | |
The firms have said that any new group would have its HQ in Canada, where corporate taxes are lower. | The firms have said that any new group would have its HQ in Canada, where corporate taxes are lower. |
These so-called "tax inversion" deals are attracting increasing criticism in the US, where President Barack Obama is understood to be looking at how they can be prevented in future. | These so-called "tax inversion" deals are attracting increasing criticism in the US, where President Barack Obama is understood to be looking at how they can be prevented in future. |
The US corporate tax rate is 35%, but 26.5% in Ontario, Canada, where Tim Hortons is based. | The US corporate tax rate is 35%, but 26.5% in Ontario, Canada, where Tim Hortons is based. |
Brand identities | Brand identities |
Burger King's majority shareholder, 3G Capital, would stay in overall control. | Burger King's majority shareholder, 3G Capital, would stay in overall control. |
The New York and Rio de Janeiro-based investment company bought Burger King in 2010 for about $3.3bn and floated the company in 2012, holding on to nearly 70% of the shares. | The New York and Rio de Janeiro-based investment company bought Burger King in 2010 for about $3.3bn and floated the company in 2012, holding on to nearly 70% of the shares. |
If a deal goes ahead, the remaining shares will be distributed between the current shareholders of Burger King and Tim Hortons. | If a deal goes ahead, the remaining shares will be distributed between the current shareholders of Burger King and Tim Hortons. |
According to reports, the companies will retain their separate brand identities but save costs by sharing corporate services. | According to reports, the companies will retain their separate brand identities but save costs by sharing corporate services. |
Combined, Burger King and Tim Hortons would have an estimated revenue of $22bn a year from around 18,000 restaurants in 100 countries. | Combined, Burger King and Tim Hortons would have an estimated revenue of $22bn a year from around 18,000 restaurants in 100 countries. |
Tim Hortons used to be owned by US fast-food chain Wendy's, before being spun off as a separate company in 2006. | Tim Hortons used to be owned by US fast-food chain Wendy's, before being spun off as a separate company in 2006. |