Mexican baked goods giant Grupo Bimbo has said it formed part of a consortium that took over Argentinean bakery company Compania de Alimentos Fargo.
Go deeper with GlobalData
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.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
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%.
