Kraft's deal for Cadbury gets investors' nod
By Sarah Skidmore |
February 4, 2010, Thursday
|
Print Edition
Print Edition
CADBURY Plc shareholders have approved Kraft Foods Inc's roughly US$19.5 billion offer to acquire the British candy maker - the final step in creating the global food giant.
The focus now shifts to how Kraft will combine the British and American companies and prove it was worth the often-bitter fight.
Kraft announced on Tuesday that nearly 72 percent of Cadbury shareholders voted in support of the deal.
Together, the companies have roughly US$50 billion in annual revenue through sales in 160 countries with their product lineup ranging from Kraft Macaroni & Cheese to Cadbury's Creme Eggs.
The deal gives Kraft access to critical growing international markets like India and Latin America where Cadbury thrives and boosts its presence in the lucrative candy and gum market.
"This combination is about growth and it is about the opportunity to create a global powerhouse," Kraft CEO Irene Rosenfeld said in an interview with The Associated Press.
However, the deal still faces some critics.
Hundreds of Cadbury workers uncertain about their future protested the takeover on Tuesday in London's Westminster area, calling for guarantees for their jobs and conditions once the company comes under new ownership.
Commitment
Some protesters chanted "Keep Our Jobs," while others held up banners which read "Don't Sell Us Out."
Rosenfeld met with Britain's Business Secretary Peter Mandelson on Tuesday to discuss Kraft's commitment to the company and its employees.
Mandelson said he did not receive any commitment from Rosenfeld that the business would be managed from the UK but that she confirmed manufacturing would stay there.
Rosenfeld said she told Mandelson the combination of Kraft Foods and Cadbury will be better for UK manufacturing than Cadbury's standalone prospects. Rosenfeld said the company is still formulating its plans for Cadbury employees and management.
The focus now shifts to how Kraft will combine the British and American companies and prove it was worth the often-bitter fight.
Kraft announced on Tuesday that nearly 72 percent of Cadbury shareholders voted in support of the deal.
Together, the companies have roughly US$50 billion in annual revenue through sales in 160 countries with their product lineup ranging from Kraft Macaroni & Cheese to Cadbury's Creme Eggs.
The deal gives Kraft access to critical growing international markets like India and Latin America where Cadbury thrives and boosts its presence in the lucrative candy and gum market.
"This combination is about growth and it is about the opportunity to create a global powerhouse," Kraft CEO Irene Rosenfeld said in an interview with The Associated Press.
However, the deal still faces some critics.
Hundreds of Cadbury workers uncertain about their future protested the takeover on Tuesday in London's Westminster area, calling for guarantees for their jobs and conditions once the company comes under new ownership.
Commitment
Some protesters chanted "Keep Our Jobs," while others held up banners which read "Don't Sell Us Out."
Rosenfeld met with Britain's Business Secretary Peter Mandelson on Tuesday to discuss Kraft's commitment to the company and its employees.
Mandelson said he did not receive any commitment from Rosenfeld that the business would be managed from the UK but that she confirmed manufacturing would stay there.
Rosenfeld said she told Mandelson the combination of Kraft Foods and Cadbury will be better for UK manufacturing than Cadbury's standalone prospects. Rosenfeld said the company is still formulating its plans for Cadbury employees and management.
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