Grupo Bimbo to take on Chinese business

Mexico’s largest baking concern, Grupo Bimbo SA, has informed the Mexican Stock Exchange that it had struck a deal to acquire the Chinese subsidiary of Spanish Baker Panrico SA for € 9.2 m. Under the agreement, Grupo Bimbo will also take on an additional net debt of € 1.3 m. 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.” Grupo Bimbo reported net profit of MXN2.83bn (€ 350 m) an increase of 6.2% from 2004.Full year sales increased to MXN56.1bn (€ 6.95 bn) in 2005, a 6.7% rise.