Tim Hortons, Burger King Confirm Talks Regarding Potential Strategic Transaction

(RTTNews) - In response to media reports, Canadian quick-service restaurant chain Tim Hortons Inc. (THI.TO, THI) and Burger King Worldwide Inc. (BKW) confirmed that they are in discussions regarding potential creation of a global leader in the quick service restaurant business. The new publicly-listed company would be headquartered in Canada.

The transaction remains subject to negotiation of definitive agreements. There can be no assurance that any agreement will be reached or that a transaction will be consummated.

Tim Hortons stated that 3G Capital, the majority owner of Burger King, will continue to own majority of shares of the new company on a pro forma basis, with the remainder held by existing shareholders of Tim Hortons and Burger King. Within this new entity, Tim Hortons and Burger King would operate as standalone brands.

The new company would be the world's third-largest quick service restaurant company, with about $22 billion in system sales and over 18,000 restaurants in 100 countries worldwide, Tim Hortons added.