Canada’s Competition Bureau has approved the takeover of Tim Hortons by U.S. burger chain Burger King, saying the deal is “unlikely to result in a substantial lessening or prevention of competition.”
The competition watchdog said Tuesday it has issued a “no action letter,” the term used when the agency says it has no issue with a proposed transaction
The transaction is still subject to a review under the Industry Canada Act and antitrust approval in the U.S., along with Tim Hortons’ shareholder approval.
This summer, Burger King said it had a deal on the table to buy all outstanding Tim Hortons shares for $94 each, an almost 40 per cent premium over where shares were trading before the deal was announced.
The deal values Tims at $11 billion dollars and would create $23 billion fast-food empire with 18,000 restaurants in more than 100 countries.
CANADA – Competition Bureau gives green light to Burger King-Tim Hortons merger
The deal will create a $23 billion fast-food empire
