Tightened U.S. tax rules could impact Tim Hortons buyout: report
The planned $12.6 billion merger of Tim Hortons Inc with Burger King Worldwide Inc will be tested by forthcoming changes to U.S. Treasury tax rules, reports Fitch Ratings Inc. The New York-based rating agency said new rules are intended to reduce the attractiveness of tax inversion strategies that encourage U.S. companies to relocate their headquarters abroad. Fitch noted that the structure of the Tim Hortons-Burger King deal, which is being led by private equity firm 3G Capital, might help avoid challenges. The two companies issued a statement saying the merger will go ahead regardless, because it has "always been driven by long-term growth and not by tax benefits."
24 September 2014•4 mins read
