Kraft confirms takeover of Cadbury
Cadbury workers to lobby govt over job fears
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Tuesday, 02, Feb 2010 06:12
By Sarah Garrod.
US food giant Kraft has officially completed its takeover of British confectioner Cadbury.
The announcement was made on Tuesday afternoon after shareholders voted in favour of the £11.5bn ($18.9bn) deal.
Earlier, the union Unite rallied with staff from Cadbury factories across the country in London today, to call on the government to give them assurances on jobs, and guarantee the future of the company.
Unite had warned shareholders that Kraft's debt could see jobs lost and investment "slashed".
The Kraft/Cadbury takeover saga began in September, when the British firm rejected a £10 billion bid. Cadbury then rejected Kraft's hostile bid in November, and following a detailed bid aimed at shareholders from Kraft, Cadbury urged its shareholders to reject the offer later in 2009.
Kraft chief executive Irene Rosenfeld said following today's announcement: "I warmly welcome Cadbury employees into the Kraft Foods family."
But on January 19th Kraft finally made an offer deemed acceptable by the Dairy Milk-maker, and shareholders were told to accept the improved bid, which values the company at £11.5 billion, or 840p a share.
Jack Dromey, Unite's deputy general secretary, said today outside Parliament that "memories of Kraft's failure to stand by its promises to retain the Terry's plant in York are causing grave concern for the Cadbury workforce".
Mr Dromey added: "Our fear is that the Kraft takeover is not in the national interest, and in the months of this hostile takeover process we have heard nothing from Kraft to calm fears that it is in the interest of the Cadbury workforce either.
"Instead, the fate of manufacturing workers in Terry's of York, who found that Kraft ownership saw their plant close, weighs heavily on the minds of the Cadbury workforce.
"[The] government must secure meaningful pledges from Kraft - and police them so that Kraft cannot again walk away from a UK workforce."