Posted by Anthony Zumpano on January 20, 2010 09:17 AM
The nearly $20 billion Kraft-Cadbury merger, despite months of bickering and the intrusion of other potential suitors, is finally a go.
Now comes the fun part. Will the brands blend like milk and chocolate, or like Velveeta and Creme Eggs? After all, Cadbury chairman Roger Carr spent most of the last four months hurling barbs at Kraft management, declaring just last week that there was "no strategic, operational, managerial, or financial reason" to execute the acquisition. But Carr’s post-deal comments imply that his aggressive stance was all in the best interests of his brand and the brand’s shareholders.
Posturing aside, expect the marriage to get off to a rocky start. Layoffs are inevitable, and in one British town, home to a Cadbury factory since 1879, workers are calling the deal “the end of a great British company.”Continue reading...