Burger King is negotiating to purchase Tim Hortons, a fast food company based in Canada. Ontario-based Tim Hortons Inc and Miami-based Burger King Worldwide Inc would pursue to work as two separate brands but would allocate corporate services. The talks between the companies were first reported by the Wall Street Journal and there's no confirmation yet about the final deal. The merge would make the companies the third largest fast-food restaurant in the world, with 18,000 restaurants in 100 countries and almost $22 billion in profits. BK will pay 15% of corporate tax rate, instead of 35% they owe the U.S. government.

The two fast food chains are taking on a deal that would establish a new firm, they announced in a statement that confirmed the reported talks by the WSJ. The deal is facing Washington's opposition because of the threat to lessen U.S. government coffers. Lately, inversion deals have been on the rise. An official from Burger King said the deal between BK and Tim Hortons could be done soon, although, further details are being settled and both firms are waiting for the right time. BK's market value is around $ 9.6 billion, while Tim Hortons has a market value of $8.4 billion, their current worth when merged will be about $18 billion.

Inversion deals help firms to save on cash stowed abroad and money on international profits, through a lower tax jurisdiction and lower corporate rate. Canada has also been the focal point of inversion deals like the U.S in giving lower federal corporate tax rate of 15%.

Burger King was established in 1954, it started with a single restaurant in Miami. It has expanded to be the second largest hamburger chain in the world. Now, BK is serving more than 12 million people daily.

Tim Hortons, is famous for its coffee, based in Oakville, Ontario, in 1995, the company was bought by Wendy's Co.