Mexico’s Grupo Bimbo gets U.S. approval to buy Canada Bread
by The Canadian Press
$1.83-billion deal now awaiting regulatory, shareholder approvals; expected to close in second quarter
TORONTO—Canada Bread Company Ltd. says the takeover of the company by Mexico’s Grupo Bimbo has been approved by the United States Justice Department under American anti-trust laws.
The Canadian Competition Bureau has already approved the $1.83-billion deal.
Subject to regulatory and shareholder approvals, the transaction is expected to close in the second quarter of this year.
Canada Bread struck a deal in February to be acquired by Grupo Bimbo, one of the world’s largest bread companies.
Grupo Bimbo has the support of Maple Leaf Foods Inc., which owns a 90 per cent stake in Canada Bread, maker of popular brands like Dempsters and Bon Matin.
Maple Leaf Foods is in the midst selling a number of assets as part of a restructuring plan to improve the profits of its overall business, which is primarily focused on meat products.