Dec 5, 2014 9:12 AM
Burger King, Tim Hortons to close deal next week
The Associated Press
Burger King and Canadian doughnut shop chain Tim Hortons expect to complete their $11 billion tie-up on Dec. 12, following a shareholder vote early next week.
Tim Hortons Inc. shareholders are scheduled to cast their ballots Dec. 9 at a special meeting. The company's board has unanimously recommended that they vote for the deal.
The companies announced on Thursday that the Canadian government approved the deal, which already has the blessing of U.S. regulators.
As part of the agreement signed by Canadian regulators, Burger King agreed to maintain existing employment levels at Tim Hortons franchises across Canada and expand in the U.S. and globally faster than planned.
The companies have said Tim Horton would take advantage of Burger King's expertise in striking international franchise deals to expand its global presence.
Miami-based Burger King Worldwide Inc. agreed in August to buy Tim Hortons in a cash-and-stock combination that creates the world's third-largest quick service restaurant company.
The combined company will have its headquarters in Canada.
Shares of Burger King, which is controlled by the investment firm 3G Capital, rose $1.91, or 5.5 percent, to $36.60 in premarket trading Friday and have soared 52 percent so far this year.