Mexico’s largest baking concern, Grupo Bimbo SA, informed the Mexican Stock Exchange (BMV) on Friday (24 March) that it had struck a deal to acquire the Chinese subsidiary of Spanish Baker Panrico SA for EUR9.2m (US$11m). Under the agreement, Bimbo will also take on an additional net debt of EUR1.3m.

In the statement Bimbo said that the business, called Beijing Panrico Food Processing Centre, has an “ample” range of baked products designed to meet local tastes along with production facilities and a distribution network that have allowed the Chinese subsidy to build up “an important presence and recognition in the cities of Beijing and Tianjin.”

“This acquisition represents a solid opportunity for immediate entry with a modest initial investment into one of the world’s fastest growing and most dynamic markets,” the company said.

The company anticipated closing the deal within the next three months.