After months of resistance, Cadbury has finally succumbed to Kraft Foods’ sweet seduction, accepting a $19.5 billion takeover from Kraft Foods Inc.. This new combination will form the world’s biggest candy company, something that has unions and lawmakers in Britain a bit worried.
Just a few days ago, Cadbury, who makes Dairy Milk chocolates and Dentyne gum, amont other products, had called Kraft a “low growth” company with a “long history of underperformance.” A raised share bid changed their tune.
Kraft CEO Irene Rosenfeld said the deal provides “both immediate value certainty and upside potential”, though chocolate lovers in Britain are said to be concerned about the effect the deal will have on Cadbury’s iconic status. Kraft produces Toblerone chocoloate, Velveeta and Oreo cookies.
I like food too much.