Navigate this market better. Subscribe for FREE stock alerts and information.

Wednesday, February 12, 2014

Canada Bread rises on news Grupo Bimbo to purchase it for $1.7 bln, (TSE: MFI.TO)

Mexico's Grupo Bimbo will purchase Canada Bread Company for C$1.83 billion ($1.66 billion) in cash, allowing the Canadian company's parent Maple Leaf Foods to focus on its meat products business, Canada Bread said on Wednesday.Grupo Bimbo, one of the world's largest bread makers, will pay C$72 a share for each share of Canada Bread, a 7 percent premium to the Canadian company's closing price on the Toronto Stock Exchange on Tuesday.The purchase builds on Grupo Bimbo's large U.S. acquisitions in recent years and strengthens its position as a top breadmaker in North America.Bimbo has expanded its footprint in recent years, acquiring Sara Lee Corp's North American bakery business for $959 million in 2010 and buying Hostess Brands' Beefsteak bread in 2013.

Maple Leaf Foods Inc., is a Canada-based meat, meals and bakery company. Shares of MFI traded higher by 2.08% or $0.33/share to $16.17. In the past year, the shares have traded as low as $12.09 and as high as $17.15. On average, 183781 shares of MFI.TO exchange hands on a given day and today's volume is recorded at 931026.