There was interesting news yesterday about a proposed Tim Hortons / Burger King merger.
This is far from done and may never happen. It may not be a good deal for Tim Hortons shareholders who will apparently trade a majority stake in Tim Hortons (a wonderful business that has long been number one in its market by a mile) for a minority stake in a rather tired third place burger chain. For Burger King it is apparently driven by Canada’s lower corporate income tax rate (about 25% versus 35% in the U.S.). There was no indication that Tim Hortons share holders would receive cash. If cash were involved then I would wonder if 3G’s friend Mr. Buffett would get involved. Burger King is controlled by 3G, Buffett’s partner in the Heinze deal.