Cadbury Agrees Kraft Takeover

Cadbury is to be taken over by the US food company Kraft after its board approved a new increased bid.

The Cadbury board will advise its shareholders to accept a new offer of 840 pence a share – valuing the company at £11.5bn ($18.9bn). Cadbury shareholders will also receive a dividend of around 10 pence a share.

The details of the deal are being finalised and Cadbury and Kraft say they will issue a statement later today (Tuesday).

The offer will consist of 500 pence in cash, with the rest made of Kraft shares. Kraft will borrow £7bn ($11.5bn) to finance the deal. Meanwhile American chocolate giant Hershey appears to have dropped out of the bidding race.

Last year, Cadbury rejected an initial takeover bid from Kraft which included the offer of 761 per share valuing the company at £10.5bn. The move sparked protests from workers and unions over fears of job losses. Cadbury employs more than 40,000 staff worldwide.

Meanwhile, Felicity Loudon, grand daughter of Sir Egbert Cadbury, the founder of the iconic UK confectionary company, has been leading a campaign against the takeover. She said, “I don’t think all is lost, we have to get the shareholders on side. We can’t sell out to a plastic cheese company. It’s a horror story.”

Kraft brands include the Ritz and Oreo cookie ranges.