Burger King has agreed not to eliminate jobs within the Tim Hortons chain as a condition of its $11-billion purchase of the Canadian brand.
The promise helped in winning the approval of the deal Thursday from Canadian regulators. BK also agreed to accelerate growth of the
Tim Hortons brand in North America and beyond, which could create more jobs in the combined chains’ Canadian headquarters and regional offices.
The deal has been controversial because of accusations that BK is moving to Canada to escape U.S. tax rates, a charge BK has steadfastly denied.
Despite the concerns aired on both sides of the U.S.-Canadian border, regulators in both countries have now given the deal a green light. The last hurdle is winning the support of Tim Hortons shareholders, who are expected to vote on the acquisition at a meeting on December 9.
The combination of BK and Tim Hortons would create one of the world’s largest quick-service franchisors.