Kraft's Acquisition Offer for Cadbury Shares

Kraft Foods, an American multinational food company, initiated an acquisition of Cadbury, a well-known British confectionery company, in early 2010. The acquisition was valued at approximately £11.5 billion, which represented a significant financial commitment by Kraft to expand its portfolio in the global snack and confectionery market. The deal was strategically important for Kraft as it aimed to enhance its presence in the UK and leverage Cadbury's strong brand recognition and product offerings. The acquisition process involved Kraft securing over 71% of Cadbury's shares, which was a critical step towards finalizing the deal. To fully integrate Cadbury into its operations, Kraft needed to reach a threshold of 75% of the shares, which it successfully achieved shortly thereafter. This allowed Kraft to delist Cadbury from the stock market, effectively ending Cadbury's status as an independent entity and marking a significant shift in the competitive landscape of the confectionery industry. The integration of Cadbury into Kraft's operations was expected to create synergies and enhance the overall market position of the combined entity, allowing for greater efficiency and expanded product distribution channels. The acquisition was met with mixed reactions from stakeholders, including concerns about the potential impact on Cadbury's heritage and workforce, as well as the implications for competition within the sector.