[Closed] Cadbury

🙁
Visited the factory a few months back, a lot of history there and the best chocolate in the world. Its a shame but $ wins again.

According to BBC the board have agreed a takeover bid from Kraft, another British institution bites the dust 🙁

Oh yes another proud British company ready to wrecked by American mismanagement. 🙁

I've worked for Cadbury on and off over the years and I'm really suprised by this. The internal communications from the board were all about fighting it, wrong fit, price too low etc and if you look at the details of where Cadbury are with Margins, what they've done to improve these (about 5% increase in 3/4 years) they were very well placed to get a much higher share price.

The only good thing from my point of view is that if it happens it'll remove the uncertainty and hopefully get the capital project side up and running again and me back into some work.

[i]another British institution bites the dust[/i]

Not to mention UK jobs, I bet.

[i]The only good thing from my point of view is that if it happens it'll remove the uncertainty and hopefully get the capital project side up and running again and me back into some work.[/i]

Nothing will force Kraft to conduct any expansion or create additonal jobs here in the UK. Kraft are doing this for two main reasons. To gain market share and the potential cost savings that go along with this. And to remove a competitor in the market place.

Where I am sincerely sorry you haven't any work at the moment, I am also very disappointed that a few hedge-fund managers have decided the fate of such a company AND, its employees.

I hope you find work soon.

Hedge fund managers have a lot to answer for, imo.

CC.

Another buy-out with borrowed money. So the money will be borrowed from Hedge funds. I believe Man You are paying that back at an an interest rate of 14.5%. Why not go the whole hog and just shove it on a credit card?

Either way, that's a hell of a lot of debt to service. And there's only one way they're going to make the money to cover it, let alone turn a profit. Savage cuts. Moving production to.... insert name of country offering lowest slave wages here.

How come we adhere to the IMF/World Bank rules on a protectionism/company ownership, while everyone else gleefully waves two fingers to them. Can you see France, Germany or America allowing this to go through. Yeah, right. Its commercial suicide. But hey.... the city will make a killing.

It all comes back to the same people in the end, doesn't it?

CC - The reason I make that comment is that the uncertainty and preparing for the defence has reduced the capital programme in the region is was working with for 2010 quite considerably, presumably to retain extra capital in the business to make the books look even better. Now this is decided hopefully the capital plan will start to return to where it was previously for 2010 and hence there will be more work.

Kraft's main reasoning behind buying Cadbury is to give them a chocolate brand for the US to go up against Hershey. Kraft currently have no chocolate brand for their home market. While I'm sure they expect some savings this potential new market is the biggest driver.

What a let-down.
I am rather hacked-off at this news.

Only last week I rediscovered the joy of Fruit'n'Nut, and now it's just gonna become plastic cheese.

Is nothing sacred anymore?

Great Britain is dead to me now.

The government come out of this looking great too. As always.

Mandleson was gobbing off in the press only a few weeks ago about Kraft expecting 'huge opposition' from the government. Looks like they must have crapped themselves at that prospect!

Or maybe just made the pretty safe assumption that he was looking for some soundbite headlines, and wouldn't actually DO a ****ing thing

SteveH.

Yeah, fair point. As I was trying to point out, Kraft get better market placement by buying their way into a strong position.
🙂

My problem is the loss of yet more UK jobs.

Anyone here remember a company called Rowntree ?.

Quality Choclate ?, spot on there too Mike T 23.

I've known Americans that use to stock up on UK choclate as they passed through the UK onto their destination.

I believe that UK Choclate is/was the best in the world.

HF managers will cash in on this and to he11 with UK jobs. This entire country is for sale and we'll all be left claiming Job Seekers allowance.

We can't make stuff here, cheaper than places like China and India, but the few companies left in the UK, which have survived the domestic economic issues, are now being stripped out of this place cos they make [i]it[/i] better than anyone else.

As I posted previously, I'm just concerned for the job losses and the wider economic impact.

CC.

Cuts are inevitable even without having to pay back borrowed money.
When two companies operating in the same market place merge there will be redundacies. You don't need two sets of office staff anymore, you can close down factories and run the remaining ones at a higher yield etc.

I don't expect there too be vast job losses. A lot of the UK based production has been moved over the last few years already, mainly out to Poland, so there isn't that much left to move. Also the weak euro at the moment now means that those items moved out to Poland now cost more than they did when they were made in the UK, especially given the rapidly increasing labour costs there.

I agree that it's a shame and don't think it makes much sense from a business point of view. But the demand for ever increasing profits from the big shareholders (giving higher dividends and share value) is IMHO entirely unsustainable if we want any kind of decent market to remain.

Looks almost certain they will be owned by Kraft by the end of today.

Er, not it doesn't. Buying a fully listed company takes a little more than a shake of hands....

But, you are right about the inevitability - given how much listed company memberships are dominated institutional shareholders, it's pretty likely that the minimum level of acceptances will be reached without too much bother.

Deal ought to be completed in around 4 weeks, I'd guess. Nice mandate for whoever's advising.

I believe that UK Choclate is/was the best in the world.

For real?

Cadbury's chocolate is sh*te.

I believe that UK Choclate is/was the best in the world.

<cough>Belgium etc