Burger King to buy Canadian firm Tim Hortons, shift base
August 27 , 2014
In a controversial deal, American company Burger King is buying Tim Hortons, a Canadian doughnut chain, and basing itself in Canada, according to the reports.
In similar deals in the past, the motivation for such firms — to buy a foreign company and then shift the legal base to the other company's home — has been corporate tax savings.
But Burger King has stressed this was not the case in this particular deal. Chief executive Daniel Schwartz said the transaction “is not about tax rates, but about growth.”