Kraft digests Cadbury in a hostile takeover!! |
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After more than a century of cherishing the delectable and mouth-watering delights, it is time to say good-bye to Cadbury. On January 18, Kraft finally took over the world’s second largest confectionery manufacturer in a hostile bid of a mammoth 11.5billion (US$19.5billion). The deal, one of the largest transnational takeovers since the credit crunch, is a sign that food companies are seeking to achieve economies of scale by combining, after Mars bought William Wrigley Jr. Co. in 2008 for $23 billion. |
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Ingredients of the outrageous buyout:After four months of brutal resistance, Cadbury has accepted a sugary $19.5 billion takeover bid from Kraft Foods Inc. On 7 September 2009 Kraft Foods made a £10.2 billion (US$16.2 billion) initial takeover bid for Cadbury. The offer was rejected, with Cadbury stating that it undervalued the company. Kraft instigated a formal, hostile bid for Cadbury valuing the firm at £9.8 billion on 9 November 2009. On 19 January 2010, it was announced that Cadbury and Kraft Foods had reached a deal and that Kraft would purchase Cadbury for 840 pence per share, valuing Cadbury at £11.5bn (US$19.5bn). Shareholders are also set to get a 10p special dividend, bringing it to a total of 850p.
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Britain infuriated over absurd move:The British government strongly condemned foreign takeovers of British companies. The deal has appalled British unions, lawmakers, and good old fashioned chocolate lovers, who fear the Kraft’s impact on one of Britain’s best-loved brands. The acquisition has faced significant opposition from British groups and organizations including trade union Unite. Potential job losses are feared to be up to 9,000 in the UK (30,000 in total).
Jennie Formby of the Unite union said |
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Will they come up with a new logo design?Having witnessed this record takeover, do you think famous Cadbury logo will vanish? Should the two company logos be merged to announce the fusion? Will it remain unaffected? Don’t forget to tell what do you think? |
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January 22nd, 2010 at 4:58 am
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February 3rd, 2010 at 9:47 am
If we had more people like you reading and commenting on this blog, I think we would get a lot further down the road.
February 16th, 2010 at 7:06 pm
You know, I’ve REALLY found your blog really rather interesting. I can’t wait to read your next one, this has really struck a cord with me.
April 29th, 2010 at 6:09 pm
Looks like Kraft is the big boy now. Are you guys in the UK really upset about this?