Canada Approves Burger King's Acquisition Of Tim Hortons

(RTTNews) - The Government of Canada Thursday approved Burger King Holdings Inc.'s (BKW) acquisition of Canadian coffee and dough-nut chain Tim Hortons Inc. (THI.TO, THI).

Industry Minister James Moore said Burger King has agreed to work with Tim Hortons franchisees to maintain 100 percent of existing employment levels, committed to expand Tim Hortons by opening new restaurants, in the U.S. and globally, at a significantly greater pace than currently planned.

Burger King also agreed to establish the headquarters of the new company in Oakville, Ontario, to maintain significant employment levels at that facility and to list the company on the TSX.

Tim Hortons will be managed as a distinct brand, without co-branding of any locations in Canada or in the United States. Its Canadian franchisee rent and royalty structure will be maintained at current levels for a five-year period.

Burger King also committed to have Canadians comprise at least 50 percent of the membership of the Tim Hortons brand Board of Directors.

It was in August that Burger King agreed to acquire Tim Hortons in a deal that would create the world's third-largest quick services restaurant company, based in Canada. Media reports had indicated the value of the deal to be about $11.4 billion.

BKW closed up 1.6 percent on Thursday at $34.69 on the NYSE, while THI advanced 0.5 percent to $83.81.