The Big Get Bigger in Kraft-Cadbury Merger

One way of looking at the deal, announced yesterday, that has Kraft Foods taking over Cadbury PLC for $19.44 billion is that this is just one more merger among food producers. Big business is really big in rural America. Cattle raisers are fighting mergers among meat packers. Farmers wait for the Department of Justice to take action that would increase competition in the seed business. Now Kraft Foods and Britain's most famous candy company have combined.

The Wall Street Journal reports that Kraft wanted Cadbury in part because the British firm has good access to developing markets in India and Brazil. Cadbury, founded in 1824, resisted Kraft's offers for a while, but over the weekend the bid was raised and that was that. Hershey, the American candy maker, was considering a bid of its own, but the Journal expects that movement to stop. 

It's all big combining with big — a trend that doesn't appear to be slowing a bit.

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One way of looking at the deal, announced yesterday, that has Kraft Foods taking over Cadbury PLC for $19.44 billion is that this is just one more merger among food producers. Big business is really big in rural America. Cattle raisers are fighting mergers among meat packers. Farmers wait for the Department of Justice to take action that would increase competition in the seed business. Now Kraft Foods and Britain’s most famous candy company have combined.

The Wall Street Journal reports that Kraft wanted Cadbury in part because the British firm has good access to developing markets in India and Brazil. Cadbury, founded in 1824, resisted Kraft’s offers for a while, but over the weekend the bid was raised and that was that. Hershey, the American candy maker, was considering a bid of its own, but the Journal expects that movement to stop. 

It’s all big combining with big — a trend that doesn’t appear to be slowing a bit.

 

Topics: Food
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