New York: Burger King said Tuesday it had agreed to buy Canadian rival Tim Hortons in an $11 billion deal that will create the world`s third-largest fast-food chain.
The new company will be headquartered in Canada in a tax inversion deal that provides a lower tax rate for the iconic American hamburger company that calls itself the "home of the whopper."
Burger King said it will pay about USD 11.4 billion (Canadian dollar 12.5 billion) in cash and stock for the Canadian coffee and donut chain.
The two companies` current combined market value is about USD 18 billion.
"Over the past four years, we have transformed Burger King into one of the fastest-growing and most profitable QSR (quick-service restaurant) businesses in the world, through successful international growth, a consistent focus on brand revitalization and strong commitment to our franchisees," said Daniel Schwartz, chief executive of Burger King, in a statement.
"We are excited to build on this progress as we continue to expand Burger King around the world and look forward to working with and learning from Tim Hortons as we together create the world`s leading global restaurant business."
