Canada's industry minister approves Burger King's takeover of coffee shop chain Tim Hortons

MarketsAssociated Press

The Canadian government is approving Burger King Worldwide Inc.'s takeover of the iconic Canadian coffee shop chain Tim Hortons Inc.

Miami-based Burger King agreed in August to buy Tim Hortons in a friendly cash-and-stock deal worth more than $10.5 billion (CA$12 billion).

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Industry Minister James Moore signed off on the deal Thursday. Burger King has agreed to maintain the existing employment levels at Tim Hortons franchises across Canada and expand in the U.S. and globally faster than planned as part of the approval.

The combined company will establish its headquarters in Oakville, Ontario, and list on the Toronto Stock Exchange.

The Canadian franchisee rent and royalty structure will also remain at their current levels for five years.

The deal still requires shareholder approval.