What Synergies Will Burger King's Merger With Tim Hortons Bring To The Table?
Critical Timing • Wed, Sep. 24
- Burger King’s merger with Tim Hortons will benefit the U.S. company in several key ways such as incremental revenues, better menu resources and of course tax savings.
- The two companies entered an agreement to create the world’s third-largest quick service with combined system sales of $23 billion and 18,000 restaurants strewn in 100 countries around the world.
- Tax inversion will allow Burger King to enjoy lower corporate tax in Canada. Canada’s federal tax rate is 15%, while Ontario’s corporate tax rate is 11.5%.
- The merged company will therefore pay a combined tax rate of 26.5%.