US confectionery and snacks giant Mondelēz International has announced it is set to acquire leading Mexican confectionery company Ricolino from baked products firm Grupo Bimbo.

Mondelēz International, the owner of Oreo cookies and Cadbury chocolate, said the US$1.3bn acquisition would double the size of its business in Mexico.

With four manufacturing facilities, Ricolino produces and distributes a range of lollipops, marshmallows, chocolates and other confectionery products under the Ricolino, Vero, La Corona and Coronado brands.

“This acquisition will provide a step change for our business in Mexico, an important growth market for us, more than tripling our routes to market and growing our position in core snacking categories,” Mondelēz International chairman and CEO Dirk Van de Put said in the 25 April statement.

The Ricolino transaction, which is expected to close in the third quarter of this year or early next year subject to customary closing conditions, followed Mondelēz International’s acquisition of Chipita, a leading cake and pastries firm in Central and Eastern Europe.

Grupo Bimbo’s main product lines include sliced bread, buns and rolls, pastries, cakes, cookies, toast, English muffins, bagels, tortillas & flatbreads, salty snacks and confectionery products.