Burger, Coffee and Donuts

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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.