George Weston announced today (22 January) that its subsidiary, Dunedin Holdings, has completed the sale of its fresh bread and baked goods business in the US to Grupo Bimbo.

The deal, which was originally announced on 10 December is worth US$2.5bn, including around US$125m of interest bearing assets.

In December Grupo Bimbo hailed its acquisition as a "transformational deal" that will help the Mexican-facing baker build its credentials as an international player.

Bimbo is already one of the world's largest bakers, with operations in North America, Latin America and Asia-Pacific. However, Bimbo's acquisition of the Weston business could, according to CEO Daniel Servitje, propel the company to the top of the bakery league, taking it ahead of the likes of Kraft Foods, Yamazaki baking Co. and Sara Lee in terms of annual sales.

"The combination of Grupo Bimbo with WFI will create one of the leading bakers in the US with a true national footprint," Weston said on the announcement of the merger.

George Weston is a Canadian public company, which through its operating subsidiaries constitutes one of North America's largest food processing and distribution groups. Weston has two operating segments: Weston Foods and Loblaw, which is operated by Loblaw Companies.