Burger King signs deal to buy Canada's Tim Hortons

Tue Aug 26, 2014 7:44am EDT

Aug 26 (Reuters) - Burger King Worldwide Inc agreed to buy Canadian coffee and doughnut chain Tim Hortons Inc in cash and stock to create the third-largest quick service restaurant group with sales of about $23 billion.

Tim Hortons shareholders will receive C$65.50 in cash and 0.8025 shares of the new company for every share they own, the companies said in a joint statement. (Reporting by Ashutosh Pandey in Bangalore; Editing by Savio D'Souza)