Burger King, Tim Hortons Talk $18B Merger

MIAMI—Burger King Worldwide and Canada-based Tim Hortons Inc. confirmed late Sunday that they’re discussing a possible merger, following a report in the Wall Street Journal. The combination would create the world’s third-largest quick-service restaurant company, with a market value of more than $18 billion.

It would also result in a tax inversion, with the combined company shifting its global corporate offices to Oakville, Ont., where Tim Hortons has been headquartered since 2009. Canada’s corporate tax rate is 15% compared with 35% in the US, the New York Times reported, although Bloomberg reported Monday that Burger King’s effective tax rate for 2013 was 27.5%. Burger King would create a new corporate parent under which the two chains would operate as standalone brands.