Mexican bakery giant Grupo Bimbo’s proposed takeover of Canada Bread is expected to close as planned on May 23 after clearing its last regulatory hurdle.
The Toronto company, 90 per cent owned by processor Maple Leaf Foods, announced Tuesday that Bimbo’s bid has passed federal review under the Investment Canada Act. Such a review is automatic for proposed foreign takeovers with an asset value greater than $354 million.
Bimbo in February announced a cash bid for all shares of Canada Bread at $72 per share, or $1.83 billion. [Related story]
Read Also
U.S. grains: Corn futures edge up, soybeans sag on improving US crop ratings
Chicago Board of Trade corn futures extended slight gains on Tuesday as short covering and bargain buying continued to support a rebound from contract lows reached during the previous session.
The offer has already received approval from Canada Bread shareholders and clearance under Canada’s Competition Act and the U.S. Antitrust Improvements (Hart-Scott-Rodino) Act.
With no further regulatory or shareholder approvals required, pending satisfaction of “remaining customary conditions,” the deal is to close May 23, the companies said Tuesday.
Canada Bread, which in fiscal 2013 booked net earnings of $157.56 million on $1.454 billion in sales, employs about 5,400 people in Canada, the U.S. and the U.K.
In Canada, the company operates 25 bakeries and the country’s biggest direct store delivery network for fresh bakery goods, reaching over 41,000 points of sale.
Grupo Bimbo, which today bills itself as “the most important baking company in the world,” said the deal will allow it to extend its presence in Canada and the U.K., and to expand its distribution networks in the U.S.
Bimbo’s brands in the U.S. already include Bimbo, Sara Lee, Oroweat, Arnold, Brownberry and others. — AGCanada.com Network
