Grupo Bimbo: receives approval to buy Canadian breadmaker

Mexico / MX. (wib) In November the Canadian George Weston Limited announced that its subsidiary, Dunedin Holdings S.a.r.l., had agreed to sell its fresh bread and baked goods business in the United States to Grupo Bimbo S.A.B. de C.V., one of the world´s leading and largest baking companies, for gross and net cash proceeds of approximately 2,5 billion USD including approximately 125 million USD of interest bearing assets. Now the Mexican group has received the U.S. antitrust approval to buy the U.S. bread-making unit, the Federal Trade Commission (FTC) said in Washington. The deal will give Grupo Bimbo a chunk of the eastern U.S. market. The FTC included the planned buy on a list of approved deals that it puts out several times a week. Weston Foods will give Bimbo rights to U.S. distribution of the Boboli, Brownberry, Entenmann´s, Freihofer´s, Stroehmann and Thomas´ brands of breads, rolls, muffins and bagels. Despite the approval, there is lingering concern that the deal could unravel because of the credit crunch. Bimbo plans to borrow 2,3 billion USD to complete the deal. In December Grupo bimbo´s Chief Executive Officer Daniel Servitje has said he aims to create the world´s largest breadmaker within two years. «This is the most important transaction in the history of Grupo Bimbo, and one of the largest in the history of baking».