January 19, 2010
by Canadian Packaging Staff
On January 19, 2010, Kraft Foods agreed to purchase Cadbury after agreeing to increase its bid and offer more cash in a $19.55-billion deal.
The purchase creates the world’s largest confectioner with annual sales of approximately $50-billion after Kraft increased its bid by nearly nine per cent from its opening gambit four months ago.
According to Cadbury’s chairman Roger Carr, it appears as though job loss will occur at its London, U.K. head office once the U.S. giant Kraft Foods officially takes over.
Cadbury’s shareholders have until February 2 to accept the deal representing US$1.37 per share with an additional dividend of approximately US$0.16 per share–which is expected to be a mere formality.