Cadbury Schweppes Takeover by Kraft
Cadbury Schweppes Takeover by Kraft
Currently, it is too early to speak of the recovery of American (and global) market of mergers and acquisitions (M&A). The volume of mergers and acquisitions fell by about 37% - to $ 1.75 trillion over the last year, and therefore fees of investment banks decreased (Zhang 2010). The deal between Kraft and Cadbury is the biggest one since March 2009, when Roche Holding completed the purchase of Genentech for U.S. $ 44 billion These transactions indicate the rehabilitation of selected major players and their optimistic assessment of their own investment prospects. Any M&A transaction in the financial crisis is the evidence of the fact that the participants find serious advantages of its implementation in the unstable period. Some companies find it advantageous to acquire other ones because of their readiness to sell themselves cheaper, others are afraid of the further depreciation of their assets. Perhaps, that is why, despite fears of losing autonomy in the development, Cadbury management accepted the proposal of the American company. Cadbury appeared in 1824 in Birmingham and was initially an ordinary grocery store of Cadbury family. Now Cadbury employs 45 thousand people in 60 countries and is the second largest confectionery in the world after the Mars-Wrigley. Among its most popular items are chocolate bars Dairy Milk, Crunchie, Wispa, candy Halls. The company annually sells more than 250 million chocolate bars in 33 countries. Revenue in 2008 made £5,4 billion, net profit - £364 million. According to Euromonitor research company, the company 's share in the global market of confectionery products is 10,3% (‘Kraft Foods Inc. proposes combination with Cadbury Plc’ 2009). Kraft Foods is the second largest in the world producer of food and drinks after Nestle. It was established in 1903 by James Kraft, who sold wholesale cheese in Chicago. Kraft products are being sold in 150 countries. Its most
Currently, it is too early to speak of the recovery of American (and global) market of mergers and acquisitions (M&A). The volume of mergers and acquisitions fell by about 37% - to $ 1.75 trillion over the last year, and therefore fees of investment banks decreased (Zhang 2010). The deal between Kraft and Cadbury is the biggest one since March 2009, when Roche Holding completed the purchase of Genentech for U.S. $ 44 billion These transactions indicate the rehabilitation of selected major players and their optimistic assessment of their own investment prospects. Any M&A transaction in the financial crisis is the evidence of the fact that the participants find serious advantages of its implementation in the unstable period. Some companies find it advantageous to acquire other ones because of their readiness to sell themselves cheaper, others are afraid of the further depreciation of their assets. Perhaps, that is why, despite fears of losing autonomy in the development, Cadbury management accepted the proposal of the American company. Cadbury appeared in 1824 in Birmingham and was initially an ordinary grocery store of Cadbury family. Now Cadbury employs 45 thousand people in 60 countries and is the second largest confectionery in the world after the Mars-Wrigley. Among its most popular items are chocolate bars Dairy Milk, Crunchie, Wispa, candy Halls. The company annually sells more than 250 million chocolate bars in 33 countries. Revenue in 2008 made £5,4 billion, net profit - £364 million. According to Euromonitor research company, the company 's share in the global market of confectionery products is 10,3% (‘Kraft Foods Inc. proposes combination with Cadbury Plc’ 2009). Kraft Foods is the second largest in the world producer of food and drinks after Nestle. It was established in 1903 by James Kraft, who sold wholesale cheese in Chicago. Kraft products are being sold in 150 countries. Its most