Chocolate producer Kandia could be put up for sale again three
years from its acquisition by UK’s Cadbury in a 100 million-euro
deal. The European Commission (EC) has cleared the proposed
acquisition of Cadbury by American group Kraft Foods, on condition
that the newly formed entity gives up its chocolate manufacturing
operations in Romania and Poland. The decision is motivated by the
high market shares held by the two companies in Romania and Poland
on the chocolate market. On the Romanian chocolate market, Kraft,
which no longer has a plant on the Romanian market, currently holds
an over 50% share, with products such as Milka and Poiana, and the
acquisition of Kandia producer would bring it a dominating
position, with an over 70% share. Kraft Foods posted a 154
million-euro turnover in Romania in 2008, almost five times more
than Cadbury Romania’s turnover of 33 million euros. Kraft launched
a tender offer worth over 10 billion pounds to buy Cadbury, but the
company rejected the offer, with the Americans now seeking
resources to improve the takeover bid. ” (…)The Board of Cadbury
would like to reiterate the rejection of the Kraft offer as
fundamentally undervaluing the company and its prospects and has
recommended that shareholders do not accept the offer. We have
great businesses and brands in Poland and Romania, and we are
focused on getting a winning start in 2010,” reads a Cadbury
release, issued in response to the EU announcement.

Subiecte #Cadbury#chocolate#Kandia-