Ottawa, December 4, 2014—Today, Industry Minister James Moore made the following statement on Burger King's application under the Investment Canada Act to acquire control of Tim Hortons:
"Burger King's application to acquire control of Tim Hortons has been approved.
"Foreign investment transactions are reviewed on their merits and the overall economic benefit for Canada.
"As a result of this review, Burger King has agreed to the following commitments:
- to work with Tim Hortons franchisees to maintain 100 percent of existing employment levels at Tim Hortons franchises across Canada;
- to expand Tim Hortons by opening new restaurants, both in the United States and globally, at a significantly greater pace than currently planned;
- to establish the headquarters of the new company (formed by Tim Hortons and Burger King) in Oakville, Ontario, to maintain significant employment levels at that facility and to list the company on the TSX;
- to manage Tim Hortons as a distinct brand, without co-branding of any locations in Canada or in the United States;
- to maintain the Canadian franchisee rent and royalty structure at current levels for a five-year period;
- to maintain 100 percent of Tim Hortons' current charitable work and involvement in communities across Canada; and
- to have Canadians comprise at least 50 percent of the membership of the Tim Hortons brand Board of Directors.
"The result of this transaction is this new global company, with sales of more than $23 billion annually, which will now be based in Canada. 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."
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For further information (media only), please contact:
Office of the Minister of Industry