Market News

George Weston to Sell U.S. Baked Goods Unit

George Weston Ltd. sold its fresh bread and baked goods business in the U.S. to Mexico's Grupo Bimbo for US$2.5 billion. Armed with nearly $5 billion from recently announced sales and cash on hand, Canada's leading bakery, supermarket operator and luxury retailer said it is going shopping for bargains. The company said it is considering buying up the rest of Loblaw Cos. Ltd., boosting its frozen bakery business, or even investing in the luxury goods business. Investors believe Weston could use the proceeds of this recent sale to buy up the 36.7% of Loblaw it doesn't already own. http://www.thestar.com/printArticle/551925 Source: Canadian Grocer E-Newsletter, Dec. 12, 2008