Why did Kraft want to takeover Cadbury?

Kraft was attracted to Cadbury due its strong performance during the economic crisis. This led to Kraft’s proposal to Cadbury of a takeover. The initial offering of $16.3 billion or 740pence per share by Kraft to Cadbury was outright rejected as derisory and an attempt by Kraft to take over Cadbury for cheap.

Was Kraft Cadbury takeover hostile?

Cadbury today rejected a hostile takeover bid from Kraft as “derisory” and not “remotely close” to its true value after the world’s second largest food conglomerate took its bid directly to shareholders.

Was Kraft Cadbury takeover successful?

The value of the increased offer was 840p, plus a 10p a share special dividend. Kraft said that holders of 71.7% of Cadbury shares had accepted its final offer, sufficient for it to take control of the Birmingham-based manufacturer and create a company with global sales of $50bn in 160 countries.

When was Cadbury taken over by Kraft?

2010
The takeover of Cadbury by US based Kraft in 2010 prompted a revamp of the rules governing how foreign firms buy UK companies. Many in the world of mergers and acquisitions felt that it had become too easy for foreign firms to buy UK rivals and the process had become a little murky.

Is mondelez Kraft?

US giant Kraft Foods, owner of UK chocolate maker Cadbury, has decided to name its new global snacks business Mondelez. The other company, focusing on its North American food business, will retain the Kraft name.

Why did Kraft split into two companies?

It said its snack food business was focused on fast-growing, developing markets, while its grocery business was primarily focused on growing revenue in North America. It said that creating two independent companies was the “next logical step”.

What is a hostile takeover example?

A hostile takeover happens when one company sets its sights on buying another company, despite objections from the target company’s board of directors. Some notable hostile takeovers include when AOL took over Time Warner, when Kraft Foods took over Cadbury, and when Sanofi-Aventis took over Genzyme Corporation.

Who bought Cadbury out?

Kraft Foods
On 19 January 2010, it was announced that Cadbury and Kraft Foods had reached a deal and that Kraft would purchase Cadbury for £8.40 per share, valuing Cadbury at £11.5bn (US$18.9bn).

Why did mondelez Kraft split?

Kraft Foods CEO Irene Rosenfeld’s broke up the food giant into two separate companies by separating its snack foods lines from its grocery brands. Rosenfeld believed that the snack food company would be a high growth, international business while the grocery company would be a stable but slow growth business.

Why did Kraft changed its name to Mondelez?

“For the new global snacks company, we wanted to find a new name that could serve as an umbrella for our iconic brands, reinforce the truly global nature of this business and build on our higher purpose — to ‘make today delicious,'” Kraft CEO Irene Rosenfeld said.

What was the deal between Kraft and Cadbury?

This high takeover bid was an attractive opportunity to do away with such a fear. A combined Kraft and Cadbury would significantly expand the global reach of both businesses and create synergies worth in the region of $625m.

What was the name of the company that bought Cadbury?

Cadbury shareholders who reinvested their windfall in the enlarged company should be feeling sated. In 2012, Kraft spun off its grocery business into Kraft Foods Group, which was later bought by Heinz to become Kraft Heinz Co. Cadbury stayed in the remaining business, renamed Mondelez International Inc. Kraft Heinz flopped as Mondelez flourished.

What was the outcome of the Cadbury takeover?

The acquisition of the maker of Dairy Milk chocolate sparked a controversy about hostile foreign bidders and led to an overhaul of the U.K.’s takeover rules. For the confectioner’s former shareholders, the outcome has been bittersweet — and in the current climate, that matters.

Why did Kraft merge with Cadbury chewing gum?

A merger allowed Kraft to gain a footing in the fast growing chewing gum category. Kraft management believes that the combination of the two companies is both a strategic as well as complimentary fit, boasting a portfolio of over 40 confectionary brands each having the ability to yield annual sales of over $100 million.

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