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Shares of Tim Hortons and Burger King soared on news of merger talks.
Shares of Tim Hortons and Burger King soared on news of merger talks.
(Sean Kilpatrick/THE CANADIAN PRESS)

Tims-Burger King merger proposal is not a taxing matter

It will take more than a crossing of the Canadian border to justify investor ebullience for a potential Burger King – Tim Hortons combination.

The $9.6-billion (U.S.) burger chain’s shares leaped over 20 per cent on Monday after the companies confirmed they were in talks about a deal that would see Burger King shift its corporate domicile to Canada. Oakville, Ont.-based Tims shares also soared. Yet for all the brouhaha over so-called inversions, the tax benefits for this deal are not immediately obvious – and certainly not able to account for the $3.6-billion boost to the fast-food outlets’ combined market value.