Burger King, Tim Hortons to close deal next week

Miami-based Burger King and Canadian doughnut shop chain Tim Hortons expect to complete their $11 billion tie-up on Dec. 12, following a shareholder vote early next week.

Tim Hortons Inc. shareholders are scheduled to cast their ballots Tuesday at a special meeting. The company’s board has unanimously recommended that they vote for the deal.

The companies announced Thursday that the Canadian government approved the deal, which already has the blessing of U.S. regulators.

As part of the agreement signed by Canadian regulators, Burger King agreed to maintain existing employment levels at Tim Hortons franchises across Canada and expand in the U.S. and globally faster than planned.

The companies have said Tim Horton would take advantage of Burger King’s expertise in striking international franchise deals to expand its global presence.

Burger King Worldwide Inc. agreed in August to buy Tim Hortons in a cash-and-stock combination that creates the world’s third-largest quick service restaurant company.

The combined company will have its headquarters in Canada.

Meanwhile, Bloomberg reported that Burger King has established a joint venture to increase its presence in Italy, Poland, Greece and Romania as part of its global expansion.

The venture, Burger King SEE SA, will have sub-franchise rights for all of those markets, the company said Friday in a statement. While the chain already has restaurants in those countries, the venture plans “aggressive development” in the region, the company said.

This story was originally published December 5, 2014 at 1:01 PM with the headline "Burger King, Tim Hortons to close deal next week."