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Wednesday, February 12, 2014

Mexico's Grupo Bimbo to purchase Canada Bread for $1.7 billion, (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.Shares of Canada Bread have surged 22 percent since October, when Canadian food processor Maple Leaf said it was mulling the sale of its 90 percent stake.The purchase builds on Grupo Bimbo's large U.S. acquisitions in recent years and strengthens its position as the top bread maker in North America.

Maple Leaf Foods Inc., is a Canada-based meat, meals and bakery company. Shares of MFI fell by 1.0% or $-0.16/share to $15.84. 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 90628.