Washington, Jan 13 - Mexican baked goods company Bimbo has received U.S. antitrust approval to buy the U.S. bread-making unit of Canada's George Weston Ltd , the Federal Trade Commission said on Monday.
The $2.38 billion deal, which was announced last month, will give the Bimbo, one of the world's largest bread bakers, a chunk of the eastern U.S. market.
The FTC included the planned buy on a list of approved deals that it puts out several times a week.
Weston Foods Inc had sales of nearly $2.2 billion in the 12 months ended Oct. 4. It will give Bimbo rights to U.S. distribution of the Boboli, Brownberry, Entenmann's, Freihofer's, Stroehmann and Thomas' brands of breads, rolls, muffins and bagels.
Despite the approval, there is lingering concern that the deal could unravel because of the credit crunch. Bimbo plans to borrow $2.3 billion to complete the deal.
A family-run business founded more than 60 years ago, Bimbo grew from a tiny Mexico City bakery into a global player, feeding markets as far away as China and the Czech Republic with its pastries, flour tortillas and peanut snacks.