Burger King is buying Canadian doughnuts chain Tim Hortons for $11bn and moving its headquarters to Canada.

The deal was confirmed on Tuesday and it will create the world's third-largest fast-food company, with $23bn in system sales and 18,000 restaurants in 100 different countries.

American multinational Berkshire Hathaway will invest $3bn in preferred equity finance, but will not participate in the management and operation of the business, the statement said.

Tim Hortons's president and chief executive, Marc Caira, said: "As an independent brand within the new company, this transaction will enable us to move more quickly and efficiently to bring Tim Hortons iconic Canadian brand to a new global customer base."

Burger King's chief executive Daniel Schwartz, said: "We are excited to build on this progress as we continue to expand Burger King around the world and look forward to working with and learning from Tim Hortons as we together create the world's leading global restaurant business."

Burger King's decision of having the new global company headquartered in Canada is controversial as it may be seen as tax-inversion, analysts from CMC markets said.

Tim Horton's shares were up on Tuesday by 9.09% to 81.50p.

JF

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