Kraft Foods looks to the UK for growth
Kraft Foods, under the stewardship of Irene Rosenfeld, has this week confirmed it will increase its manufacturing capacity in the UK to take on board more brand names from the Kraft Foods portfolio. Despite the fact that the company was unable to give cast-iron guarantees to the UK government in a meeting last week, it seems as though Kraft Foods is more than willing to invest into the UK, something which should secure the jobs of thousands of Cadbury employees who were becoming concerned about the future.
The truth is that while Kraft Foods will look to make savings where possible, what is the point of buying a business for £11 billion and then literally ripping it apart?
During the Cadbury takeover saga we saw a number of derogatory headlines aimed at Kraft Foods with suggestions the company was looking to asset strip Cadbury and take advantage of the weak pound. However, it has to be said that the US giant played the perfect takeover game, giving little away and ultimately increasing its offer at the last minute as it became apparent that no third party would enter the fray.
Kraft Foods has been quick to refinance its own debt to secure future credit lines and so far it looks as though Cadbury could well prosper under its US counterpart.
Share this..
Related stories
National Express on the verge of being taken over
National Express today stands on the verge of being taken over in a potential £765 million deal financed by Spain's Cosmen family, the largest shareholder in the group, in unison with CVC. The consortium increased its offer to £5 a share which is a significant improvement on the earlier offer of £4.50 a share. The consortium has also confirmed that a previous agreement with Stagecoach to acquir...
Read MoreLehman Brothers fallout knocks £50 billion off FTSE100
Who would have guessed that a move which had been flagged late last week could turn into a disaster for worldwide stock markets? Who could have seen the turmoil and knock on affect from the failure of Lehman Brothers to agree a lifeline?
A massive £50 billion pounds was knocked of the value of the UK's premier stock market index as traders ran for the hills after the Lehman Brothe...
Where next for the UK stock market?
The UK stock market has been very volatile over the last few weeks amid uncertainty over the UK political scene and now concern that the European Union could be falling apart. A number of prominent issues have come and gone such as the EUR750 billion bailout fund, initially well received but now attracting more and more sceptics, the bailout of the Greek economy, initially very slow but now appare...
Read MoreBritish Telecom feels the pain
British Telecom has today announced third-quarter figures which are down nearly 50% on the corresponding period last year. The company has been hit by reduced spending from most multinational companies and government departments as well as problems with the growth engine room which is the Global Services Division. As a consequence the company is looking to introduce an additional £500 million wor...
Read MoreWould BP be able to fight off any takeover offer?
The very fact that the market capitalisation of BP has fallen by in excess of £100 billion since the Gulf of Mexico disaster began would obviously at some stage make the company a potential takeover target. However, in a startling development to the situation it is believed that the US government has unofficially given oil giant Exxon the "go-ahead" to at least consider an offer of BP. This would...
Read More