The Competition Bureau has issued a No Action Letter with respect to Burger King’s acquisition of Tim Hortons.
The Bureau’s concluded the transaction is unlikely to result in a substantial lessening or prevention of competition due to, among other things, the existence of a large number of competitors.
Further, there are already low barriers to entry in the fast food industry.
The bureau’s letter confirms it has reviewed a specific proposed transaction and concluded that it will not, at this time, challenge that transaction before the Competition Tribunal under the mergers provisions of the Competition Act.
Still, the transaction is subject to other regulatory approvals.
Founded in 1954, Burger King is the second largest fast food hamburger chain in the world—it operates in approximately 14,000 locations in 98 countries and territories worldwide, and it’s opened 300 restaurants in Canada.
For its part, Tim Hortons is one of the largest publicly traded restaurant chains in North America, based on market capitalization, and it’s the largest in Canada. As of June 29, 2014, Tim Hortons was operating more than 4,000 restaurants, including more than 3,000 in Canada.