Cadbury, one of the UK’s best-loved brands, is set to come under foreign ownership after accepting the takeover bid from US group Kraft Foods.
The Cadbury board has advised its shareholders to accept a new offer of 840p a share – valuing the company at £11.5bn. The new offer will consist of 500p per share in cash, with the remainder made up in Kraft shares.
Cadbury chairman Roger Carr said: “We believe the offer represents good value for Cadbury shareholders and are pleased with the commitment that Kraft has made to our heritage, values and people throughout the world.
“We will now work with the Kraft management to ensure the continued success and growth of the business for the benefit of our customers, consumers and employees.”
The takeover will raise fears of widespread job cuts at Cadbury, which employs more than 6,000 staff in the UK and 46,500 worldwide. Cadbury sites in Bournville, Birmingham and Somerdale, Bristol, could be among those locations hit.
