Burger King Worldwide Inc. (NYSE:BKW) announced it has agreed to buy Tim Hortons Inc. (NYSE:THI), a Canadian donut and coffee shop chain, for cash and stock.

Reuters reported the deal Tuesday morning, noting that Tim Hortons shareholders will receive about 65.50 Canadian dollars ($59.74) in cash and 0.8025 shares of the new company for every share they own.

Earlier on Tuesday, the Wall Street Journal, citing people familiar with the matter, reported that Warren Buffett's Berkshire Hathaway would provide about 25 percent of the deal's financing, in the form of preferred shares. The sources added that the exact structure of Buffett's participation remains unclear and the discussions are ongoing.