What are the potential benefits of a merger between Cadbury and Kraft?
They are able to boost sales with Cadbury’s existing distribution and supply chain networks. They are now able to produce at a lower price, which benefits customers. Higher sales will benefit Government in taxes. Since the merge, Kraft Foods has been successful and only has a few competitors like Pepsi and Kellogs.
Has Kraft Cadbury takeover been successful?
Kraft Foods has sealed its takeover of Cadbury after over 70% of shareholders in the UK’s largest confectioner voted in favour of the deal. Cadbury says it had received valid acceptances of the offer from investors representing 71.7% of the firm.
Why did Kraft want to takeover Cadbury?
Kraft was attracted to Cadbury due its strong performance during the economic crisis. This led to Kraft’s proposal to Cadbury of a takeover. The initial offering of $16.3 billion or 740pence per share by Kraft to Cadbury was outright rejected as derisory and an attempt by Kraft to take over Cadbury for cheap.
How did Kraft take over Cadbury?
The takeover of Cadbury by US based Kraft in 2010 prompted a revamp of the rules governing how foreign firms buy UK companies. That became a big issue when Kraft bought Cadbury. Just a week after promising to keep Cadbury’s Somerdale factory, near Bristol open, Kraft backtracked and said it would close the plant.
What type of merger was Kraft and Cadbury?
The merger was opposed in the United Kingdom because of Kraft’s harsh approach of targeting an iconic British brand that had been in business for over 150 years. Eventually, both companies did compromise in an amicable manner and concluded a friendly tie-up.
How much did Cadbury sell for?
On 19 January 2010, it was announced that Cadbury and Kraft Foods had reached a deal and that Kraft would purchase Cadbury for £8.40 per share, valuing Cadbury at £11.5bn (US$18.9bn).
How much did cadburys sell for?
Is there still a Cadbury family?
For all its proud history, like it or not, Cadbury’s was no longer a family business. Beatrice Cadbury was the daughter of Richard Cadbury, who, in tandem with his brother George, had laid the foundations for the firm’s meteoric rise in the 20th century.
Who owns Cadbury today?
Mondelez International
Cadbury is now a subsidiary of an arm of Kraft, or spin-out company, known as Mondelez International. Its chief executive is Irene Rosenfeld. Her remuneration rose by 50 per cent in 2014, to $21m.
Is Cadbury a good company?
Cadbury has long been recognised as an ethical company. Adopting a stance that encourages other companies to improve their own ethical standards may well be the most socially responsible thing they have done yet.