Burger King buying Tim Hortons for about $11 billion, moving headquarters to Canada

Burger King is buying Canadian coffee-and-doughnut chain Tim Hortons Inc. for about $11 billion, creating the world's third-largest fast-food company.

The corporate headquarters of the new company will be in Canada, a move that may help Burger King lower its taxes. Burger King will still run its business out of Miami.

Burger King Worldwide Inc. will pay $59.74 in cash and 0.8025 common shares of the new company for each Tim Hortons share. This represents total value per Tim Hortons share of $85.79, based on Burger King's Monday closing stock price. Alternatively, Tim Hortons shareholders may choose either all-cash or all stock in the new company.

Tim Hortons stock was up about 8.5 percent in midmorning trading Tuesday; Burger King shares were down 2 percent.