Dubai: Burger King’s acquisition of Tim Hortons will not have an impact on the fast food chain’s operations in the Middle East, according to a source close to the company.
Burger King said on Tuesday that it will acquire Tim Hortons, a Canadian doughnut and coffee chain, for around $11.4 billion in a deal that will create the world’s third largest fast food company, with a market capitalisation of about $18 billion. It will be based in Canada, possibly to take advantage of lower corporate taxes.
The transaction is backed in part by Warren Buffett’s Berkshire Hathaway.
According to the source, the acquisition will not have an effect on store locations in the region. The stores will be operational even after the new company is set up. Also, there will be no changes to staff in the region, he added.
Asked if the new company will have a presence in the Middle East, the source said that “it’s too early to comment on future expansion.”
“In the interim, there will be no changes to branding [and] menu,” he told Gulf News.
Burger King is franchised in the region by The Olayan Group in Saudi Arabia, while Tim Hortons is franchised by UAE-based Apparel Group.
Burger King has a strong presence in the region, with more than 300 outlets.
