Home > Uncategorized > Chocolate Can’t Cure the Brits’ Blues

Chocolate Can’t Cure the Brits’ Blues

cartoon: The Sun

After a long, drawn-out battle, it looks like Cadbury is going to be acquired by Kraft, an American multinational. The British are pissed. They seem to feel the way we would feel if, say, Hummer (an American icon, right?) was bought by the Chinese. Wait a second… Okay okay- if Apple was bought by foreigners.

After months of  resistance to a Kraft takeover, British campaigns to “Keep Cadbury British”, assurances from P.M. Gordon Brown about the security of Cadbury jobs, and warnings from Warren Buffet (a LARGE shareholder in Kraft) about the diluting of Kraft shares, it LOOKS like a deal has been reached. Kraft finally raised the cash component of its offer and Cadbury shareholders will vote on the proposal on February 2nd. There are currently no other bidders, although some at Cadbury are hoping for a last-minute bid from Hershey.

Kraft believes Cadbury will benefit from its more powerful supply chain. The multinational looks forward to expanding into emerging markets and the gum and candy industry (apparently a very high-growth industry). The Brits will probably sulk for a while, but they should already know- Globalization can be so unfair sometimes!

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