Kraft to face investigation into Cadbury takeover terms

Kraft Foods is reportedly being investigated by British regulators on whether the company misled employees and investors in its bid to take over Cadbury.

Reports suggest that the US food giant is being investigated over the terms of its agreement to buy Cadbury, which were formalised in January in a deal worth about £12.1bn.

The Panel on Takeovers and Mergers is said to be looking into comments Kraft executives made during the takeover battle about Cadbury’s Somerdale candy factory near Bristol. Kraft officials had said the factory would be kept open in the initial takeover letter.

The pledge was made despite Cadbury saying it would close the plant and move the jobs to Poland. After the takeover was completed in February, Kraft then said it decided to accept that the Somerdale plant would be shut by 2011.

Kraft executives are now due to be called later in March to give evidence in front of a parliamentary committee that is holding hearings on the takeover.

Last week, Cadbury’s UK managing director Trevor Bond was handed a new role as president of Kraft Foods Europe, as the US food company begins to integrate the two businesses.

Latest from Marketing Week

PLEASE SIGN IN OR REGISTER. IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and inspiration that will help you develop as a marketer and leader.

Register and receive the best content from the only title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work, so we can make Marketing Week more relevant to you.

Register now

THE BEST CONTENT

Our award winning editorial team and columnists will ask the biggest questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we will be your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Dedicated to developing your skills and helping you achieve marketing excellence. Find guidance on leadership, professional development and the latest industry jobs.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here