NEW YORK (TheStreet) -- Shares of Burger King Worldwide (BKW) are higher by 4.60% to $33.89 in pre-market trading on Tuesday, after the fast food chain announced it has finalized an agreement to purchase the Canada-based doughnut chain Tim Hortons (THI) .
The merger between the two companies will create the world's third largest quick service restaurant company.
The American burger restaurant will move its headquarters to Canada, as the deal is structured as a tax inversion.
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Burger King is paying over $11 billion for Tim Hortons. The merged company will have approximately $23 billion in system sales, and over 18,000 restaurants in 100 countries, both brands will be managed independently after the deal is closed.
Warren Buffett's Berkshire Hathaway (BRK.B) has committed $3 billion of preferred equity to finance the merger, but will not participate in the business' management or operations, Market Watch reports.
Shares of Tim Hortons are up 11.88% to $83.60 in pre-market trading today.
Separately, TheStreet Ratings team rates BURGER KING WORLDWIDE INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate BURGER KING WORLDWIDE INC (BKW) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."