Burger King Worldwide Inc. is in talks to buy Canadian coffee-and-doughnut chain Tim Hortons Inc., a deal that would be structured as a so-called tax inversion and move the hamburger seller's base to Canada, The Wall Street Journal reported yesterday. The two sides are working on a deal that would create a new company and the takeover would create the world’s third-largest quick-service restaurant provider. Inversion deals have been on the rise lately and are facing stiff opposition given that they threaten to deplete U.S. government coffers. A move by Burger King to seal one is sure to intensify criticism of them, since it is such a well-known and distinctly American brand. Tim Hortons has a market value of about $8.4 billion, while Burger King's is about $9.6 billion, a combined worth of about $18 billion. By moving to a lower-tax jurisdiction, inversion deals enable companies to save money on foreign earnings and cash stowed abroad, and in some cases, lower their overall corporate rate.
