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In August 25th, American fast-food company Burger King confirmed that their company was going to merge Canadian brand Tim Hortons and interested in moving  headquarters to Canada. According to those two company’s statement, the two sides would form a new company after the merger, and keep the two original brand. By that time, the new company will become the third biggest catering enterprises around the world.

Burger King Group said, once the M & A Contract negotiated, Burger King will move the company’s headquarters from America to Canada and set up a new listed corporation. Canada will become the largest market for the new company. The transaction has attracted a lot of controversy, many people think that why Burger King left America is to avoid tax. The tax rate in Canada is much lower than in America.

What is noteworthy is that Buffett, the head of the Berkshire Hathaway Inc, will provide $3000000000 financing support for Burger King. Last year, Berkshire had joined forces to Burger King’s shareholder 3G Capital to buy the famous tomato paste manufacturer Heinz,  which became one of the largest M & A case in history. Participating in this kind of merger again has revealed Buffett’s passion for food industry.

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Reference:

“Done deal: Tim Hortons agrees to takeover by Burger King” by Andrea Janus:  http://www.ctvnews.ca/business/done-deal-tim-hortons-agrees-to-takeover-by-burger-king-1.1976444

“Burger King’s takeover of Tim Hortons ‘not a tax dodge’: Oliver”: http://www.theglobeandmail.com/report-on-business/burger-king-tim-hortons-merge-not-a-tax-dodge-says-finance-minister/article20714392/

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The Russian government announced in August 7th that Russia will have a comprehensive embargo on imported fruit, vegetables, meat, fish, milk and dairy products from the European Union, Australia, Canada, Norway, and American . As a response to America and EU implementing several rounds of sanctions in the last several months.

Since the Crimea incident happened in March, the United States, Europe and some other countries have conducted several rounds of sanctions on Russia, which including restrictions on Russian financial, military and energy industry export. Also these countries formally suspended Russian banks  financing in Us and European capital market.

Then, in August 5th, President Putin ordered the government to formulate a comprehensive response to Western sanctions and signed the decree. That decree required Russia banned imports of beef, pork, poultry, fish, fruit, vegetables, cheese, milk and dairy products from Australia, Canada, Norway for one year. However,Children’s food import from those countries will not be restricted.

In my opinion,massive economic sanctions and anti sanctions, is a double-edged sword to a great extent. The Russian economy met one disaster after another, at the same time, the Western countries also faced loss. However, other countries such as Brazil, Argentina may find some opportunities to increase output to those countries.

Reference:

“Food imports ban backfires on Russia’s economy”:  http://www.dw.de/food-imports-ban-backfires-on-russias-economy/a-17888880

“Russia’s Food Import Ban is Already Backfiring Horribly”:  http://kitchenette.jezebel.com/russias-food-import-ban-is-already-backfiring-horribly-1628844734