Burger King, Tim Horton's announce merger

Published 08/26 2014 01:54PM

Updated 08/26 2014 02:16PM

Burger King/Tim Horton's
Burger King/Tim Horton's/Image courtesy of MGN Online
Syracuse (WSYR-TV) - American fast-food giant Burger King and Canadian coffee chain Tim Horton's announced on Tuesday that they had agreed to a merger.

The move would enable Burger King to complete the "inversion" process that nearly American 50 companies have used over the past 10 years to lower their tax rate by moving their headquarters to foreign countries, according to CNN.

Company leaders say, however, that the merger will not result in any major tax savings.

"We don't expect there to be meaningful tax savings," said Daniel Schwartz, CEO of Burger King Worldwide. "This transaction is not about tax rates, but about growth."
Burger King points out, however, that 80 percent of its outlet will be located north of the border following the merger.

According to CNN, the company also expects two thirds of its revenue to now come from Canada.

Additional details are available on CNNMoney.com.

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