Restaurant Brands International
) announced the completion of the merger between Tim Hortons Inc.
and Burger King Worldwide, Inc., worth roughly $11.0 billion. The
two brands will continue to operate independently under the new
global quick service restaurant - Restaurant Brands International.
As of Dec 12, 2014, shares of Tim Hortons and Burger King Worldwide
common stock have stopped trading on the Toronto Stock Exchange and
New York Stock Exchange, respectively. The shares of Restaurant
Brands International will commence trading on the Toronto Stock
Exchange and New York Stock Exchange under the symbol QSR from Dec
15, 2014. Further, shares of Restaurant Brands International
Limited Partnership - a subsidiary of Restaurant Brands
International - will start trading on the Toronto Stock Exchange
under the symbol QSP the same day.
Restaurant Brands International would be the world's third-largest
fast-food company with a market value of roughly $18 billion. The
combined business is expected to generate about $22 billion in
sales and constitute more than 18,000 restaurants in 100 countries.
Earlier, on Dec 10, 2014, the Tim Hortons shareholders had approved
the long-awaited transaction. However, the Burger King shareholders
were not required to vote on the merger since 3G Capital, which
owns approximately 70% of the company, had already approved the
However, it had not been easy for either of the companies to close
the deal. The merger, announced in August this year, received
approval from the Canadian government only last week after Burger
King agreed to comply with certain conditions. (Read:
Burger King-Tim Hortons Merger Gets Canadian
Moreover, the deal has been the talk of the town for a while now
owing to tax issues. The location of the headquarters of the new
company has been a bone of contention ever since the deal was
announced. Burger King was criticized as some thought that the deal
was intended to derive benefits from tax inversion by shifting the
headquarters of the new company to Canada. The deal did not find
favor with the White House either. Also, many expressed their
disappointment on social media websites like Facebook, Inc. (
) and Twitter, Inc. (
). Rumors that the deal would result in extensive layoffs at Tim
Hortons further added fuel to fire.
Better-ranked stocks in the restaurant sector are BJ's Restaurants,
) and DineEquity, Inc. (
), both of which sport a Zacks Rank #1 (Strong Buy).
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