Mexican firm Grupo Bimbo’s proposed C$1.8bn ($1.65bn) acquisition of Canada Bread from Canadian food company Maple Leaf Foods has received approval under the Investment Canada Act.

The companies have now secured all the approvals required to conclude the transaction, and expect to close the deal on 23 May 2014.

The deal has already secured approvals from Canada Bread shareholders, the US Department of Justice (DOJ) and the Canadian Competition Bureau.

If the transaction is completed as planned, Maple Leaf will receive $1.65bn in cash for its 90% holding in Canada Bread and a stub period dividend of $0.43 per share.

Maple Leaf Foods president and CEO Michael H McCain said: "The sale to Grupo Bimbo will provide an exciting future for our bakery business and enable Maple Leaf to focus on accelerating profitable growth in the consumer packaged meats business, supported by leading brands, market shares and significant financial strength."

"The sale to Grupo Bimbo will provide an exciting future for our bakery business and enable Maple Leaf to focus on accelerating profitable growth in the consumer packaged meats business."

The sale allows Maple Leaf to focus on its meat products business, while Grupo Bimbo will be able to strengthen its presence in Canada and the UK as well as expand its distribution network in the US.

Canada Bread produces and markets flour-based products, including bread, rolls, bagels, and frozen partially baked or par-baked breads and bagels, and has a workforce of around 5,400 across its 25 bakery facilities.

Grupo Bimbo operates 144 plants and over 1,600 distribution centres located in 19 countries across the Americas, Europe and Asia. The company offers sliced bread, buns, cookies, snack cakes, English muffins, bagels, pre-packaged foods, tortillas, salted snacks and confectionery products, among others.