Boston, MA 08/25/2014 (wallstreetpr) – People may feel that Whopper is the home for Burger King Worldwide Inc (NYSE:BKW), but it has decided to make Canada its new home. According to reports, BKW is looking forward to buying Canadian coffee and doughnut chain Tim Hortons. During an interview one of the Burger King Worldwide Inc (NYSE:BKW) representatives said that if everything went fine, then this deal would make one of the largest food chains of the world.
The probable after-effects of this deal:
Market experts think that if Burger King Worldwide Inc (NYSE:BKW) closes this deal, and then it will surely move its headquarters to Canada. If it happens then BKW will join the list of those American companies who have moved their headquarters to other countries in order to lower down the tax bill.
T&C of the deal:
Reports claim that once the deal is executed, then BKW will create a new corporate parent where both the brands i.e. Burger King Worldwide Inc (NYSE:BKW) and Tim Hortons will work together, but independently. According to an estimate, the total market value of both the companies will be around $18 billion after the acquisition deal. When reporters tried to take in-depth information about the exact timeline of this deal, one person close to the matter said that the final agreement could be reached within this week.
Although it is a merger deal between both the companies, but the management of both the companies can argue on a possibility of corporate inversion. It has come out as a trend in last few months that many American companies have taken over foreign companies in order to lower their tax bill. Obama government is looking after this matter very closely as it thinks that whichever companies are doing or have done transactions like this in the past are trying to unfairly — though legally — cutting their tax bills. It got the attention of the government when Pfizer took over AstraZeneca and shifted it’s headquarter in Britain in order to find lower tax rates.
