Burger King To Receive C$345 Mln If Tim Hortons Drops The Merger Deal

(RTTNews) - Canadian coffee and dough-nut chain Tim Hortons, Inc.(THI, THI.TO) will have to pay C$345 million as termination fee to Burger King Worldwide, Inc. (BKW), if the former backs out from the $11 billion merger deal, stated a Burger King regulatory filing.

Meanwhile, as per the filing, Burger King has agreed to pay a termination fee of C$500 million if the deal doesn't receive certain regulatory approvals.

Both the companies had entered into an agreement on August 26, according to which Burger King said it would buy Ontario-based Tim Hortons for about $11.4 billion or C$12.5 billion, for creating the world's third-largest quick services restaurant company.

Billionaire investor Warren Buffett's company Berkshire Hathaway Inc. (BRK-B, BRK-A, BRKa) has committed $3 billion of preferred equity financing in the deal. Further, the filing stated upon completion of the transaction, Berkshire would be allowed to buy 1.75 percent of the combined company.