The Canadian Competition Bureau has approved Mexican firm Grupo Bimbo’s proposed acquisition of Canada Bread.
In February, the Mexican firm agreed to acquire Canada Bread for C$1.83bn ($1.66bn).
Canada Bread is the bakery products unit of Ontario-headquartered Maple Leaf Foods, which holds 90% of the company.
The company's product portfolio includes sliced bread, buns, bagels, English muffins and tortillas in Canada, frozen bread in North America and specialty bakery goods in the UK.
The acquisition will allow Grupo Bimbo to expand its North American operations.
Grupo Bimbo stated that the transaction is still subject to the approvals of the Department of Justice of the United States and the Canadian Minister of Industry.
The approvals are expected to come in the second quarter, the company added.
In the recent years, Grupo Bimbo has completed a series of acquisitions in North America, including the purchase of Sara Lee's North American bakery business in 2010 and Hostess Brands' Beefsteak brand in 2013.
