Mexican baked goods giant Grupo Bimbo has said it formed part of a consortium that took over Argentinean bakery company Compania de Alimentos Fargo.
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Bimbo said in a filing to the Mexican Stock Exchange that it has a 30% stake in the consortium of investors led by Mexican investor Fernando Chico Pardo, reported Dow Jones International News.
The consortium took over Fargo last week after assuming the $30m in debt that the company owed to Deutsche Bank Trust Company Americas.
Prior to the deal there had been much speculation that Bimbo would eventually buy into Fargo.
Bimbo went on to say that it would eventually like to take full control of Fargo. If Chico Pardo ever wants to pull out of the investment, Bimbo would likely buy his 70% controlling stake in the company, said Guillermo Quiroz, Bimbo’s chief financial officer.
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By GlobalDataSuch a move would likely meet with disapproval at Argentina’s antitrust authorities. Bimbo has a 20% share of Argentina’s packaged bread market, while Fargo controls another 50%.
