OTTAWA, Dec 4 (Reuters) - Canada’s government on Thursday approved Burger King Worldwide’s C$12.64 billion ($11.10 billion) takeover of coffee-and-doughnut chain Tim Hortons Inc , which will create a new company based north of the border.
Burger King had agreed to buy the iconic Canadian company in August in a transaction that would create the world’s third-largest fast-food restaurant group, but the cash-and-stock deal was subject to approval by regulators.
“The result of this transaction is this new global company ... which will now be based in Canada,” Industry Minister James Moore said in a statement.
“Our government is pleased to see companies like Burger King investing in Canada’s economy and looking to benefit from our low taxes and open markets.”
Moore said that after a review of the deal, Burger King had agreed to a number of commitments, including setting up the headquarters in Oakville, Ontario, and listing the company on the Toronto Stock Exchange.
Tim Hortons will be managed as a distinct brand, and at least half of the members of the brand’s board will be Canadians.
Burger King has also agreed to expand Tim Hortons by opening new restaurants at a significantly greater pace than currently planned both in the United States and globally.
Canada’s Competition Bureau gave its stamp of approval to the deal in October.
1 US dollar = 1.1386 Canadian dollar Reporting by Leah Schnurr; Editing by Lisa Von Ahn