(Reuters) – Canada’s government on Thursday approved Burger King Worldwide‘s (BKW.N) $12.64 billion (US$11.10 billion) takeover of coffee-and-doughnut chain Tim Hortons Inc (THI.TO), which will create a new company based north of the border.
Burger King had agreed to buy the iconic Canadian company in August in a transaction that would create the world’s third-largest fast-food restaurant group, but the cash-and-stock deal was subject to approval by regulators.
“The result of this transaction is this new global company … which will now be based in Canada,” Industry Minister James Moore said in a statement.
“Our government is pleased to see companies like Burger King investing in Canada’s economy and looking to benefit from our low taxes and open markets.”
Moore said that after a review of the deal, Burger King had agreed to a number of commitments, including setting up the headquarters in Oakville, Ontario, and listing the company on the Toronto Stock Exchange.
Tim Hortons will be managed as a distinct brand, and at least half of the members of the brand’s board will be Canadians.
Burger King has also agreed to expand Tim Hortons by opening new restaurants at a significantly greater pace than currently planned both in the United States and globally.
Canada’s Competition Bureau gave its stamp of approval to the deal in October.
3G Capital, a New York-based private equity firm, is the majority owner of Burger King and is set to hold about 51 percent of the new combined business.
(Reporting by Leah Schnurr; Editing by Lisa Von Ahn)
(This story has been edited by Kirk Falconer, editor of peHUB Canada)
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