Thursday, January 21, 2010

Cadbury goes American. Is this healthy for British manufacturing?

The Kraft product logo

On January 19th, after a four-month battle, Roger Carr, chairman of Cadbury, said his board was recommending to shareholders a £11.9 billion ($19.5 billion) takeover bid by Kraft Foods, of Northfield, Illinois. Somehow, despite the blustering of politicians and the protests of organised labour, great companies like this one have been slipping out of British control.
In business terms, Kraft’s acquisition (which will go through unless rivals top the bid by January 23rd) may be a good deal for both companies. They have complementary markets across the globe in which to cross-sell their products: Cadbury is strong in India and various Commonwealth countries; Kraft is solid in continental Europe, Russia and China. Greater scale may help the two develop in the emerging markets that probably hold the key to future fortune. 

the whole point behind the obvious bid and take over is WHY can’t Britain hang on to ownership of iconic brands such as Jaguar, Land Rover, the Mini, Rowntree, the Times and now Cadbury, purveyor of chocolate to children of the British empire?

is it because of the sterling or is that the whole British manufacturing sector is loosing edge ........
only FUTURE will tell , though what implications it has for the Indian corporate sector is already in process...

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