Burger King Denies Deal Is About Taxes

For years, Burger King has tried to take down the Big Mac with the Whopper, its own version of a deluxe burger. Now the long-suffering fast-food chain is going after McDonald's with two arguably more timeless classics: coffee and doughnuts.

On Tuesday, Burger King announced it would buy Canadian bakery and coffee chain Tim Hortons for $11.4 billion. Burger King is currently based in Miami, while Tim Hortons is headquartered in Oakville, Ontario. The headquarters of the combined, as-yet unnamed goliath will be in Toronto, although both Burger King and Tim Hortons will continue to operate from their current home cities.

With an estimated $23 billion in sales and 18,000 restaurants in 100 countries, the new entity is expected to be the third biggest fast-food chain by sales, behind McDonald's and Yum! Brands.