Canada Bread to be sold for $1.83 billion to Mexico’s Grupo Bimbo

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Michael McCain, president of Maple Leaf Foods, arrives for a media briefing in Laval, Que., on Dec. 12, 2008. Canada Bread has struck an agreement to be acquired by one of the world\'s largest bread companies in a transaction valued at .83 billion.Grupo Bimbo, based in Mexico, said Wednesday it will buy Canada\'s dominant breadmaker with the support of Maple Leaf Foods, which owns a 90 per cent stake in the operations THE CANADIAN PRESS/Ryan Remiorz

TORONTO – A Mexican company is buying Canada Bread (TSX:CBY) in a deal valued at $1.83 billion with the support of its parent Maple Leaf Foods (TSX:MFI).

Grupo Bimbo is offering $72 per cash for all shares of Canada Bread, maker of Dempsters and other food brands.

That’s about seven per cent above Canada Bread’s recent stock price and 31 per cent higher than when it was put up for sale.

Canada Bread and Maple Leaf said in October that they were looking for a buyer at the right price.

Canada Bread shares closed Tuesday at $67.26, up from $61.25 on Oct. 18. Maple Leaf shares closed Tuesday at $15.84, up from $13.30 on Oct. 18.

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