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| Burger King and Tim Hortons agree merger details | Burger King and Tim Hortons agree merger details |
| (35 minutes later) | |
| Burger King has confirmed that it plans to buy Tim Hortons, the Canadian coffee and doughnut chain, for about $11bn (£6.6bn; 8.3bn euros). | |
| The deal would create the world's third-largest fast-food chain, with 18,000 restaurants in 100 countries. | The deal would create the world's third-largest fast-food chain, with 18,000 restaurants in 100 countries. |
| The new group would have a market capitalisation of about $18bn and annual sales in the region of $23bn. | |
| Burger King's majority shareholder, 3G Capital, will own about 51% of the merged company. | Burger King's majority shareholder, 3G Capital, will own about 51% of the merged company. |
| Under the terms of the deal, which has been unanimously approved by both companies' boards of directors, Tim Hortons shareholders will receive 65.50 Canadian dollars ($59.74; £36.10) in cash and 0.8025 shares of the new company for every share they own, the companies said in a joint statement. | Under the terms of the deal, which has been unanimously approved by both companies' boards of directors, Tim Hortons shareholders will receive 65.50 Canadian dollars ($59.74; £36.10) in cash and 0.8025 shares of the new company for every share they own, the companies said in a joint statement. |
| Warren Buffet's investment firm Berkshire Hathaway is understood to be contributing about 25% of the financing for the cash and equity deal. | Warren Buffet's investment firm Berkshire Hathaway is understood to be contributing about 25% of the financing for the cash and equity deal. |
| 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%, after the companies confirmed they were in talks. | |
| Tax avoidance | Tax avoidance |
| The firms have said that any new group would have its headquarters in Canada, where corporate taxes are lower. | The firms have said that any new group would have its headquarters 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. |
| 3G Capital, a 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. | 3G Capital, a 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 companies will retain their separate brand identities, but save costs by sharing corporate services. | The companies will retain their separate brand identities, but save costs by sharing corporate services. |
| 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. |