Burger King and Tim Hortons Merger Warren Buffett Funding

When you need an Oracle – Burger King to acquire Tim Hortons

In a deal that is worth over US$11b, Burger King is really banking on the new merger to come through on the new tax savings, which a Canada HQ can offer.
Tax savings in Canada could reduce Burger Kings current 35% rate in the US down to just 15% in Canada. Warren Buffett’s Berkshire Hathaway has come to the table with US$3b but has been able to negotiate for preferred shares as well as a 9% dividend interest given that Berkshire will continue to pay taxes in the US at a higher rate. Brazilian powerhouse, 3G Capital, is to be the bigger stakeholder post the takeover. Buffett has previously been in bed with 3G Capital and CEO and founder Jorge Paulo Lemann during the US$23b acquisition of Heinz last year. Tim Hortons is ready to be a global brand and we see massive upside potential in Burger King stocks in the immediate future. A great long term investment opportunity as the tax benefits and the internationalisation of Tim Hortons will take a few years to be implemented and realised

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