Mexico's Grupo Bimbo gets U.S. approval to buy Canada Bread Company

TORONTO – Canada Bread Company Ltd. (CBY:TSX) says the takeover of the company by Mexico’s Grupo Bimbo has been approved by the U.S. 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 (TSX:MFI), 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.