Inside Buffett’s Bold Burger King Bet

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This post is in partnership with Fortune, which offers the latest business and finance news. Read the article below originally published at Fortune.com.

By Dan Primack

Warren Buffett is finally getting into the burger business.

Buffett’s Berkshire Hathaway has agreed to help finance Burger King’s purchase of Canadian coffee-and-doughnut chain Tim Hortons.

The deal, first reported by The Wall Street Journal, was officially announced Tuesday morning. The two companies said they have agreed to merge, bringing together Burger King, which is majority-owned by Brazilian private equity firm 3G Capital, and Tim Hortons, creating an $18 billion quick-serve restaurant behemoth.

The two companies said that Tim Hortons shareholders will receive C$65.50 in cash and 0.8025 shares of the new, combined company for each Tim Horton share they currently own. When the deal is closed, 3G Capital will own about 51% of the combined company.

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