Canada still vetting Tim Hortons transaction under takeover law

OTTAWA – The Canadian government is still reviewing Burger King Worldwide Inc.’s proposal to buy Tim Hortons under the nation’s foreign takeover law, according to a spokesman for the minister in charge of the study.

Industry Canada is handling the review and a decision may be made “in the coming weeks,” Jake Enwright, a spokesman for Industry Minister James Moore, said by telephone Tuesday from Ottawa. He declined to elaborate on whether an extension to the initial 45-day review period had been granted. Canada’s competition bureau earlier Tuesday said it wouldn’t seek to block the transaction.

Burger King said Aug. 26 it planned to acquire Tim Hortons for about C$12.5 billion ($11.2 billion) in a deal that would create the third-largest fast-food company. Canada reviews all foreign takeovers of businesses valued at more than C$354 million to determine if the deal represents a “net benefit” to the country.

Moore said Sept. 17 that his department received Burger King’s application for approval the previous week. At the time, he said the review would likely take a few weeks. The government can unilaterally extend the review for 30 days and can extend it further with the consent of the acquiring company.

Scott Bonikowsky, a Tim Hortons spokesman, didn’t immediately return an email seeking an update on regulatory approvals. Burger King’s media office didn’t immediately return a phone call and email seeking comment.