Canada Bread acquisition clears another hurdle
by Eric Schroeder
TORONTO — Canada Bread Company, Ltd. said the Ontario Superior Court of Justice has issued a final order approving the company’s acquisition by Grupo Bimbo, S.A.B. de C.V.
The arrangement will result in the sale of Canada Bread to Grupo Bimbo. The sale is expected to close in the second quarter of 2014, subject to completion of other closing conditions, including approval under the Investment Canada Act.
The transaction previously has received shareholder approval and clearance under the Competition Act and the Hart-Scott-Rodino Act, and at a special shareholder meeting April 3, the transaction was approved by Canada Bread shareholders.
Grupo Bimbo announced in February its agreement to acquire Canada Bread in a transaction valued at $1,663 million. The acquired company has annual sales of $1,300 million and is a baker and marketer of value-added flour-based products, including fresh bread, rolls, bagels and frozen partially baked or par-baked breads and bagels. The company, which employs 5,400, is 90% owned by Maple Leaf Foods Inc. Its common shares are listed on the Toronto Stock Exchange under the ticker symbol CBY.