Kraft's Cadbury bid to win EU nod
Brussels , January 4, 2010
US food group Kraft Foods is set to win conditional EU regulatory approval this week for its hostile 10 billion pound ($16.1 billion) takeover bid of British candy maker Cadbury, a source familiar with the situation said on Monday.
The European Commission is now reviewing Kraft's takeover plan after the maker of Dairylea and Oreo cookies last month offered concessions to sooth regulatory concerns that its Cadbury bid may be anticompetitive. A decision is expected by Wednesday.
'It will be a phase one clearance based on commitments offered by Kraft,' the source told Reuters, declining to provide details.
Kraft said last month that it had offered concessions in a few markets and did not expect the regulator to demand major divestments.
The combination of Kraft, the world No.5 confectionery group and maker of Toblerone, Cote D'Or, Terry's and Suchard, and Cadbury, No.2 and the maker of Dairy Milk chocolate, would put the group ahead of current leader Mars-Wrigley.
Cadbury would help expand Kraft's business into faster-growing markets such as India and the higher-margin and faster-growing confectionery markets.-Reuters