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Cadbury agrees to acquisition by Kraft
Our Bureau
Date of posting: 21-01-10
      It was a defense fight, which the whole British nation up to the government busy: The traditional company Cadbury did not want to be taken over from the US group Kraft - until Kraft increased its offer.

      The new offer evaluates Cadbury with 840 pence for each share, communicated the British. Kraft offers 500 pence in cash for each share as well as 0.1874 shares of Kraft. The offer represents a good value for the Cadbury shareholders, announced Cadbury. It corresponds to 13-times the value of the Ebitda of Cadbury from the past year and evaluates Cadbury with approximately 12 billion Pound of Sterling (13.1 billion Euros). Together Kraft and Cadbury can catch up now with the world market leader with food, Nestlé.

      It was large takeover battle since a half year, when Kraft Foods on 9 November 2009 had announced its firm intention to make an offer to acquire all share capital of Cadbury. Just now on 19 January 2010, Kraft Foods announced the detailed terms of a recommended higher final offer. Now we see that it was only one question of the price.

      The British minister of economics Peter Mandelson had interfered with reminders to the conscience of the share owners and the persons employed of the traditional company Cadbury with fantasyful protest actions had tried to win sympathy for their fight against the "hostile assumption" by the US giant.

      The last offer stood at GBP 10.5 billion, and now after Kraft increasd that offer for another billion, the Cadbury management is recommeding now to accept the new offer of Kraft.

       Through the acquisition, a company emerges which achieves an annual turnover of approximately 50 billion dollar with brands such as Toblerone and Cream Eggs. Cadbury, whose history goes back until 1824. is the best known sweets producer of Great Britain. It manufactures Dairy chocolate, Cadbury cream eggs and Trident Kaugummi. Kraft has brands like Milka and Toblerone chocolate, Philadelphia cheese and Jacobs coffee.

      Kraft wants to buy Cadbury, in order to catch up with competitor Mars. The American group Mars has taken over chewing gum company Wrigley in 2008. For India’s packaged food market, the acquisition of Cadbury by Kraft Foods Inc. is an important milestone. So far, Kraft has an insignificant presence in India compared with Cadbury’s sales of £240 million. But with Cadbury, the picture is changing, as Cadbury had a share of about 32% of the Indian confectionery market in 2008 and a 70% share of the chocolate market.

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