MIAMI – Burger King Worldwide Inc. is in talks to buy Canadian coffee-and-doughnut chain Tim Hortons Inc., a deal that would move the hamburger chain's base to Canada, in a so-called tax inversion.

The two sides are working on a deal that would create a new company, according to an article in the Wall Street Journal, creating the third-largest quick-service restaurant provider in the world. A key rationale for the deal is the potential to leverage Burger King's expertise in global development to boost Tim Hortons international growth, the companies said, adding they plan operate the two as stand-alone brands.

Miami-based Burger King is the world's second-largest hamburger chain, according to the company's website. There are more than 13,000 Burger King locations in nearly 100 countries. Tim Hortons, based in Oakville, Ontario, is well known for its coffee, a high-margin business line in which U.S. fast-food giants have raced to grab market share. Burger King has been adding more coffee items and flavors to its menus to catch up with rival McDonald's, which has had success with its McCafe specialty coffee line.

According to the Wall Street Journal, a person familiar with the matter said a deal between the two companies could be struck soon, though additional details on timing have not been disclosed.