Aug 26, 2014 8:49 AM by The Associated Press
MIAMI - Burger King and Canadian coffee and doughnut chain Tim Hortons will become one company. The merger will create the world's third largest fast food company and could save Burger King big money.
A headquarters move to Canada can help Burger King lower its taxes. It's called a tax inversion, which has become increasingly popular among U.S. companies and a hot political issue. It allows companies to transfer money earned overseas to the parent company without paying additional U.S. Taxes. Although corporate headquarters are planned for Canada, Burger King will reportedly still run its business out of Miami where it's currently located.
Tim Hortons stock rose more than 10% today in pre-market trading. Burger King's shares fell slightly.
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