MIAMI—Burger King Worldwide and TimHortons Inc. have made it official, announcing Tuesdaythat the Miami-based burger chain had agreed to buy the donut makerin a stock-and-cash deal worth $11.4 billion. The 60-year-oldBurger King will remain headquartered in Miami, although theholding company for both brands will be based in Canada, where TimHortons is located.

Although the bulk of the financing for the acquisition will comefrom a $9.5-billion debt financing package led by JPMorgan and Wells Fargo, WarrenBuffet's Berkshire Hathaway is committing$3 billion of preferred equity. Berkshire will only be a fundingsource and will play no role in management or operations of the newcompany, which among other things will seek to roll out the TimHortons format, largely concentrated in Canada, to a globalcustomer base. The two brands will be managed independently.

3G Capital, which currently controls 70% ofBurger King equity, will have an approximately 51% stake in the newcompany, which will be the third largest in thequick-service restaurant sector. Shares of the newparent company are expected to be listed on the New York andToronto stock exchanges.