Mergers & Acquisitions

Kraft-Cadbury

Cadbury
Started by John Cadbury in 1824
Headquartered in Cadbury House in London
And Started producing the world famous
Dairy Milk Chocolate in 1905
In 1969 the Cadbury Group merged with
Schweppes
Taken over by Kraft foods on 19 jan, 2010

Kraft Foods
Worlds second largest food company in
more than 150 countries
Headquartered at Northfield, US
Kraft Foods was formed on December 10,
1923.
Eleven $1 billion brands with operations
in about 70 countries

Reasons for the Deal

Entering Emerging market through cross
border Acquisitions
Overcoming Entry Barriers in New
Markets
Increased Market Power
Valuation of Cadbury by 50% more than
market value
Breaking new grounds by Cadbury

Entering Emerging Markets

India, China, Mexico , Brazil & South Africa are
among the strongest merging markets
Kraft has very little footprint in these places
apart from China
Most of its revenues come from North & South
America & Europe which have very slow growth
Cadbury is a cross-border acquisition to enter
into growth markets in Asia, Middle-East & Africa