Canada allows Burger King to purchase Tim Hortons

The Government of Canada approved on Thursday the offer of $ 11 billion made by Burger King for the purchase of Canadian coffee retailer Tim Hortons, removing another obstacle to the creation of the third largest chain of fast-food restaurants in the world.
The agreement, which is partly financed by Warren Buffett, has triggered a fierce debate in the us, with some lawmakers accusing Burger King of buying the Canadian company to move its headquarters to the neighbouring country for tax reasons.
Burger King denies that the acquisition was motivated for tax reasons. According to information from Government of Canada, the global headquarters of the combined company-which will aggregate $ 23 billion in sales in more than 18 thousand restaurants-will be based in Oakville, town around Toronto.
The location of the settlement was one of several demands that Burger King has agreed to have the proposed acquisition approved, that the Minister of industry of Canada, James Moore. The company also pledged to maintain employment levels in Canadian stores of Tim Hortons and expand the network of cafes for a global presence at a much higher pace than expected previously.
Burger King is based in Miami, but is controlled by the American company and Brazilian 3 g Capital. "Our Government is pleased to see companies like Burger King investing in Canadian economy and benefiting of our low taxes and open markets," said Moore.
According to Canadian law, government officials need to assess investments and acquisitions of local assets by foreigners in order to verify whether such business is beneficial to the country's economy. Source: Dow Jones Newswires.