Mergers & Acquisitions

Mergers & AcquisitionsKraft-Cadbury

CadburyStarted by John Cadbury in 1824Headquartered in Cadbury House in LondonAnd Started producing the world famous Dairy Milk Chocolate in 1905In 1969 the Cadbury Group merged with SchweppesTaken over by Kraft foods on 19 jan, 2010Kraft FoodsWorlds second largest food company in more than 150 countriesHeadquartered at Northfield, USKraft Foods was formed on December 10, 1923.Eleven $1 billion brands with operations in about 70 countriesReasons for the DealEntering Emerging market through cross border AcquisitionsOvercoming Entry Barriers in New MarketsIncreased Market PowerValuation of Cadbury by 50% more than market valueBreaking new grounds by CadburyEntering Emerging MarketsIndia, China, Mexico , Brazil & South Africa are among the strongest merging marketsKraft has very little footprint in these places apart from ChinaMost of its revenues come from North & South America & Europe which have very slow growthCadbury is a cross-border acquisition to enter into growth markets in Asia, Middle-East & Africa