Burger King to Buy Tim Hortons for $11.4 Billion — ‘A Royale with Cheese’?By MICHAEL J. DE LA MERCED
AUGUST 26, 2014
…. (below quote added by Sean Dreznin via IMDB)
“Vincent: And you know what they call a… a… a Quarter Pounder with Cheese in Paris?
Jules: They don’t call it a Quarter Pounder with cheese?
Vincent: No man, they got the metric system. They wouldn’t know what the fuck a Quarter Pounder is.
Jules: Then what do they call it?
Vincent: They call it a Royale with cheese.
Jules: A Royale with cheese. What do they call a Big Mac?
Vincent: Well, a Big Mac’s a Big Mac, but they call it le Big-Mac.
Jules: Le Big-Mac. Ha ha ha ha. What do they call a Whopper?
Vincent: I dunno, I didn’t go into Burger King.”
Burger King Worldwide agreed on Tuesday to buy the Canadian restaurant chain Tim Hortons for about $11.4 billion, creating one of the biggest fast-food operations in the world – with a little help from Warren E. Buffett.
As part of the transaction, however, the American burger giant will move its home to Canada, where the combined company’s biggest market will be.
Under the terms of the deal, Burger King will pay 65.50 Canadian dollars in cash and 0.8025 of one of its shares for each Tim Hortons share. That amounts to about 94.05 dollars a share, or $85.78 a share, based on Burger King’s closing price on Monday.
The combined company will have 18,000 restaurants in 100 countries, and $23 billion in annual revenue.
But while Burger King will relocate north of the border, raising concerns about yet another company moving abroad to reduce its tax bill, the switch in corporate nationality appears more aimed at appeasing Canadian regulators wary of a foreign company buying a national icon like Tim Hortons. In fact, Burger King is expected to save only a little, if any, on taxes through the so-called corporate inversion.
The two companies emphasized that each will continue to be run from their current home bases, with Tim Hortons operated out of Oakville, Ontario and Burger King from Miami. Neither is altering their franchisee agreements or business models.
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