Canadians are dismayed by news that billionaire investor Warren Buffet is helping Burger King with its plot to acquire Tim Hortons for tax aversion purposes.
Buffet’s Berkshire Hathaway is committing $3 billion of preferred equity financing, though insists it will have no involvement in the management or operation of Burger King or Tim Hortons.
If BK does buy Tims, the conglomerate will become the third-largest fast food company in the world.
BK wants to move from Miami to Ontario, which would drop its tax rate from 35% to 15%. But experts are saying that BK’s lust for Timmy’s goes beyond taxes: the burger chain wants to take the iconically Canadian brand overseas as part of an ambitious international expansion.
While regular Dark Roast-sipping joes may be largely unhappy about the looming deal, investors are bouncing with joy: shares in Tim Hortons jumped 19% and Burger King’s stock rose even higher when the news was confirmed.