MercoPress. South Atlantic News Agency

Kraft sealed Cadbury takeover as shareholders accept the deal

Irene Rosenfeld, Kraft’s CEO

US food giant Kraft has sealed its takeover of British confectioner Cadbury after shareholders accepted the deal. The move means Kraft can press ahead with its five-month battle for control of Cadbury, which has 186 years of history as an independent company.

Kraft's chairman and chief executive Irene Rosenfeld said the takeover was “good for the UK and good for British manufacturing jobs”. The cash-and-shares deal, recommended by the Cadbury board two weeks ago, values the UK firm at around £11.4bn.

Investors holding 71.7% of Cadbury's shares have backed the takeover and the offer will remain open for shareholders who have yet to accept until further notice. Kraft needed 50% plus one share to take control of the Birmingham-based firm.

When the US giant passes the 75% threshold it will take the company off the stock market, and when it reaches 90% support it can automatically buy up the remaining shares.

Commenting on the development Ms Rosenfeld said the combined company had a “phenomenal future”.

“The combination of Kraft Foods and Cadbury creates a global powerhouse in snacks, confectionary and quick meals,” she said.

She later met with Business Secretary Lord Mandelson. “I was delighted with the opportunity to meet with Lord Mandelson and to discuss with him our commitment to invest and grow in the UK.

”As we have said from the outset, our interest is in growing Cadbury and investing in its great brands and people. That will be good for the company, good for the UK and good for British manufacturing jobs. We aim to restore Cadbury to its place as the world's biggest and best confectionery business“ she said.

Lord Mandelson's attempts to gain reassurance on jobs and investment could not prevent Cadbury workers attacking the Government for not doing enough to stop the takeover. Hundreds of workers staged a noisy protest in Westminster, central London, to call for guarantees for their jobs and conditions.

Jack Dromey, deputy general secretary of the Unite union, said at the demonstration: ”This is a sad day for Britain. A world-class sector of British excellence is being taken over by a debt-laden US company”.