Burger King and Tim Hortons have just reached an agreement to merge, essentially creating the world's third-largest quick-service restaurant.
According to a news release issued early this morning, the newly created company will be based in Canada. Each of the original fast-food brands -- Burger King and Tim Hortons -- will continue to operate independently, but they'll share "best practices that will come with common ownership by the new company."
See also: Is Burger King Moving to Canada?
Regarding the day-to-day structure of both companies, not much will change. Alex Behring, executive chairman of Burger King and managing partner at 3G Capital, will lead the new global company as executive chairman and director. Marc Caira, president and CEO of Tim Hortons, and Daniel Schwartz, CEO of Burger King, will retain their respective titles, as well as have executive ranking in the newly formed company.
While the new company will make its home in Canada, Burger King's headquarters will remain in Miami. In response to concerns that Burger King, an iconic American brand, would forsake its homeland, the company stated it would "continue to support and preserve its long-standing commitment to local communities and charitable causes in the United States, including the Burger King Scholars Program."
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Burger King's cash portion of the transaction is around $125 billion, with an additional $9.5 billion in debt financing. Shares of the new parent company will be traded on the New York Stock Exchange and the Toronto Stock Exchange, and units of the new partnership will be traded on the Toronto Stock Exchange.
Once formed, the new company will have about $23 billion in system sales, with more than 18,000 restaurants in 100 countries, making it the world's third-largest fast-food chain, after McDonald's and Yum Brands (KFC, Pizza Hut, and Taco Bell).