Cadbury sale agreed

Following on from the news this morning that the Cadbury board had recommended the new bid from Kraft, comes the news that the six-month battle has come to an end and the offer has been accepted.

The GBP£11.7 billion takeover will create the world's largest maker of chocolate and sweets, making an estimated US$100 million per year.

Kraft still has to persuade a majority of Cadbury's shareholders to accept the deal, and the door remains open until 25 January for its rival Hershey to make a counter offer, BBC World states.

Kraft said the deal would create a "global confectionery leader."

The offer will consist of 500 pence in cash, with the rest made of Kraft shares. Kraft will borrow GBP£7 billion (US$11.5 billion) to finance the deal.

Job security

Unions are now worrying over the security of jobs. Kraft has given no specific assurances over the future of 4500 UK jobs, though it says it wants to invest in the Bournville site and maintain production at Somerdale, near Bristol, also known as Keynsham.

It has not ruled out cuts, and staff numbers at Cadbury's head office in Uxbridge are expected to be reduced, according to the BBC's business editor Robert Peston.

Kraft also said it expected "meaningful cost savings" as a result of the merger.

Jennie Formby from the Unite union said the need for Kraft to cut costs could mean staff cuts in the longer-term.

"We are concerned about the levels of debt that Kraft has," she told the BBC.

The trade union Unite has warned that Kraft plans at least 10,000 job cuts worldwide to slash costs and repay the cash it will need to borrow for the deal.

Mr. Brown said today, "The one thing I want to say is this: we are determined that the levels of investment that take place in Cadburys in the United Kingdom are maintained.

"And we are determined of course, that at a time when people are worried about their jobs, that jobs in Cadbury can be secure," he added, the British paper The Times stated.

Terry's

Kraft bought Terry's, another well-know British chocolate company, in 1993 and closed its York factory two years later.

Today though, Kraft was going out of its way to reassure Cadbury's staff about the takeover.

Irene Rosenfeld, the chairman and chief executive of Kraft Foods, said the deal was good news for shareholders and staff.

Rosenfeld said, "We have great respect for Cadbury's brands, heritage and people. We believe they will thrive as part of Kraft Foods."

Roger Carr, chairman of Cadbury, added, "We believe the offer represents good value for Cadbury shareholders and are pleased with the commitment that Kraft Foods has made to our heritage, values and people throughout the world."

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Will Cadbury get taken over? |Cadbury defends decision |Hershey and Ferrero join forces for Cadbury |Sales boost for Cadbury

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