Tim Hortons is taking a big step into the global market.

The Canadian fast food chain confirmed this morning it is merging with Burger King to form the world’s third largest fast food corporation.

Under the deal, Burger King’s owner, 3G Capital, will control the new company with 51 per cent of the shares. Warren Buffet’s Berkshire Hathaway will also invest three billion dollars in the new conglomerate.

Burger King will gain a big tax advantage, because the global headquarters for the new company will be based here in Canada. Canada’s business tax rate is 26.5%. The average rate in the U.S. is 40%.

Under terms of the deal, each Tim Hortons shareholder will receive $65.50 in cash plus about eight-tenths of a share of the new company.