At a special shareholder meeting April 3, the acquisition of Canada Bread Co. by Grupo Bimbo S.A.B. de C.V. was approved by Canada Bread shareholders.
The Arrangement of Sale to a wholly-owned Bimbo subsidiary was okayed by shareholders holding 99.98% of the common shares voted at the special meeting.
Canada Bread said it expects the transaction to close before the end of June, subject to completion of other closing conditions including receipt of a final order of the Ontario Superior Court of Justice (Commercial List). The company said it will seek this order April 8. Closing also is contingent upon approval under the Investment Canada Act. The transaction already has received clearance under the Competition Act in Canada and the Hart-Scott-Rodino Act in the United States.
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.
