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The deal between Tim Horton’s and Burger King will go ahead now that the Canadian Competition Bureau has approved the merger between the two companies.
Tim Hortons is one the largest publicly traded restaurant chains in North America with 4,546 restaurants system wide. Burger King is the second largest fast food hamburger chain in the world and has 14,000 locations in 98 countries including 300 in Canada. A merger was inked between the two companies in late August worth more than $11 billion.
According to the Competition Bureau, the transaction is “unlikely to result in a substantial lessening or prevention of competition due to the existence of a large number of competitors and the low barriers to entry in the fast food industry.”
On Tuesday the Bureau issued a “no action letter” or NAL, signaling its intentions not to pursue the matter further. The transaction is still subject to other regulatory approvals. The Bureau has reviewed the proposed transaction and concluded that it will not challenge the transaction before the Competition Tribunal.
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