Canada’s industry minister approved fast food giant Burger King’s takeover of coffee and doughnut chain Tim Hortons, with conditions such as maintaining staffing levels at Tim stores across this country.
In a statement Minister James Moore, said that following a review of the proposed acquisition under Canada’s foreign investment rules that Burger King has agreed to the conditions.
“The result of this transaction is this new global company, with sales of more than $Can23 billion annually, which will now be based in Canada,” he said.
The $Can12.5 billion ($A13.08 billion) deal was announced in August.
According to the government’s terms, the merged company will also seek to expand globally “at a significantly greater pace than currently planned”.
Its new headquarters will be in Oakville, Ontario, and the new company will seek a listing on the Toronto Stock Exchange. Also half of its board must be Canadian.
Finally, in North America, Tim and Burger King will not be co-branded, and franchisee and royalty structures will be maintained at current levels for five years.
Founded in 1954 with a restaurant in Miami, Burger King became the world’s second biggest hamburger chain, with 13,000 shops in nearly 100 countries. According to the company, it serves an average of 11 million customers a day.
Tim Hortons, named after its founder, has become iconic on Canadian roadways since its first coffee and doughnut shop opened in 1964 in Hamilton, Ontario.
It now boasts more than 4500 stores.