Canada’s competition bureau announced Tuesday that it has issued a No Action Letter with respect to Burger King’s acquisition of Tim Hortons, clearing a key hurdle in the fast food merger deal.
“The bureau concluded that this 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 and the low barriers to entry in the fast food industry,” the federal government said in a statement.
The transaction is still subject to antitrust approvals in Canada and the U.S., along with Tim Hortons’ shareholder approval.
A No Action Letter confirms that the bureau has reviewed a specific proposed transaction and concluded that it will not, at this time, challenge that proposed transaction before the Competition Tribunal under the mergers provisions of the Competition Act, the release says.
The $11 billion (U.S.) takeover deal was announced last August and will create the world’s third-largest quick-service restaurant company, with about $23 billion in system sales and more than 18,000 restaurants in 100 countries.