TORONTO Aug 26 Canada will evaluate Burger King
Worldwide Inc's proposed C$12.64 billion ($11.5 billion)
bid for Tim Hortons Inc to determine whether it would
provide a net benefit to the country, Finance Minister Joe
Oliver said on Tuesday.
He said Industry Canada would evaluate the deal. All such
transactions above C$354 million are automatically reviewed by
the federal government.
Oliver declined to comment on the merits of the deal but
noted the Conservative government had cut corporate taxes since
it came to power in 2006 in a bid to spur economic growth.
The two retailers plan to domicile the combined company in
Canada, taking advantage of a lower corporate tax rate and more
favorable tax treatment of overseas earnings. Such deals are
known as tax inversions.
"Canada has moved to a highly competitive tax regime,"
Oliver told reporters after a meeting with technology
executives. "We moved corporate taxes since we've been in office
from 20 percent to 15 percent and 11 percent for small
"We believe this has been a constructive move that is
designed to retain capital in this country, which results in
more business expansion and more employment."
(1 US dollar = 1.0955 Canadian dollar)
(Reporting by Leah Schnurr; Writing by Alastair Sharp; Editing
by Jeffrey Hodgson and Lisa Von Ahn)