Burger King–Tim Hortons Merger Now Official And Complete

The finagling and positioning are done now. Burger King has completed its merger.

Zacks.com reported today that the Burger King Worldwide, Inc. and Tim Hortons, Inc. are now officially subsidiaries of the newly created Restaurant Brands International (NYSE and TSE: QSR-WI) starting on December 15, with headquarters located in Oakville, Ontario. Burger King will keep a corporate office in Florida but now report to the new main office in Ontario, as well.

Shares under QSR will begin selling on December 15, as well as shares of Restaurant Brands International Limited Partnership, a subsidiary of Restaurant Brands, Inc., will begin selling on the same day.

The road to the completed merger was long and arduous, finally culminating when Tim Hortons shareholders approved the merger at the same time the Canadian government approved the merger. Burger King had no such issues as its parent company, 3G Investments, had already approved the merger.

Burger King did, however, have to comply with specific terms set forth by the Canadian government, such as maintaining current Tim Hortons employment levels, adhering to Tim Hortons’ charitable obligations, moving corporate headquarters to Canada, among others. Burger King complied with all requests, allowing for the merger to move forward.

Global News is reporting that the shifting of leaders within the company has begun. Elias Diaz Sese, a veteran Burger King executive, now takes the reins of Tim Hortons. Diaz Sese, who takes over for former Tim Hortons CEO Marc Caira, will oversee the day-to-day operations as well as guide Tim Hortons’ global expansion.

Diaz Sese was head of Asia Pacific operations for Burger King, and was initially responsible for bringing the Whopper giant into Europe, where, according to his bio on the Burger King investor relations website, “he delivered strong net restaurant growth and introduced the brand to consumers in key growth markets.”

Diaz Sese will relocate to the new headquarters in Ontario from Singapore. Caira is now the new vice chairman of Restaurant Brands International board.

Tim Hortons currently has 3,665 locations in Canada, 870 in the United States, and another 56 in the Middle East. One of the contingencies of the $12 billion merger was that the new corporation would help grow the Canadian doughnut giant internationally. Diaz Sese has been tapped to lead the way.

Restaurant Brands International now becomes the third-largest fast-food company in the world, with a market value of almost $18 billion. The newly combined business accounts for a market value of approximately $22 billion, and incorporates over 18,000 businesses in over 100 countries.

[Image courtesy of the Wall Street Journal]