Bourneville based Cadbury’s desperate attempt to stay independent is finally over, with the UK group’s board accepting an irresistible revised offer of £11.9-billion ($19.7 billion) offer from US-based Kraft Foods after almost four months of opposition. The makers of Toblerone chocolate and Oreo cookies launched a hostile bid for Cadbury in September last year, but struggled to find favour with the UK firm, which as recently as last week derided Illinois-based Kraft as an “unfocused conglomerate”.
The Cadbury-Kraft combine will be the world’s second-largest chocolate and gums company behind Mars-Wrigley. The deal is also smaller than the $23 billion US chocolate maker Mars paid for gums maker Wrigley in 2008.
The deal will make the $42-billion makers of Toblerone chocolates and Nabisco cookies a market leader in India where it made several unsuccessful attempts to either form a joint venture with or acquire significant stake in a domestic company.
Cadbury, with products like Dairy Milk and 5-Star bars, has a 70% share in the Indian chocolate market. The Rs 2,000 crore-Cadbury India’s distribution network of an estimated 1.2 million outlets will help Kraft reach every nook and corner of the country.
Combined group to be No.1 in chocolate & confectionery, overtaking Mars.
Group will have 40 confectionery brands with annual sales in excess of $100 m each.
Increased scale for both cos in developing markets such as Brazil, Russia & China, where Kraft has a stronger presence, and India, Mexico and South Africa, where Cadbury holds leading positions.
Posted by Preet Varun Singh
0 comments:
Post a Comment