Tim Hortons and Burger King have confirmed talks for a potential merger, and the news spread quickly throughout Canada on Monday.
(*It was reported on Tuesday morning that the two companies have indeed come to a deal, a merger worth $12.5 billion. The deal would result in the world’s third-largest fast food company.)
“Canadians take a real interest in any potential sale of Tim Hortons to Burger King,” said NDP industry critic Peggy Nash. “It’s especially of concern to the 100,000 Canadians who work at Tim Hortons.
“What we need to know is that jobs will be protected, and we’re really looking for transparency from the federal government under the Investment Canada Act, to know that there will be a net benefit to Canada.”
Reports say the two companies – if merged – would operate as standalone business, but that the deal could also allow Tim Hortons, the iconic Canadian coffee chain, to expand successfully into the American market, which it has yet to do despite small stabs.
“They acquire, with this merger, access to the franchisees who own and operate more than 3,500 restaurants in the United States,” said Jim Danahy, chief executive of consultancy ConsumerLab, on Monday. “It’s access to the people who understand the U.S. market, infrastructure, distribution. It’s not an insignificant benefit, and it’s one that management said they were looking for.”
Video/Files: The Canadian Press