8/6/2019 Cadbury Acquisition by Kraft

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ByNeha Mehta

8/6/2019 Cadbury Acquisition by Kraft

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To break into emerging markets

Cadbury being theholder ofthehighest

marketshare in sweetswith over 300product portfolios,and Kraftswill to

expand in sweetsmarket.

To increase itsmarketshare

8/6/2019 Cadbury Acquisition by Kraft

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Itwill result in having a global marketshare of 14.9% Itwill result in becoming No.2 company globally in high-

growth gummarket. Itwill bring Chocolateand gums under one roof i.e.

expanding under thesweetsegment. Theacquisition ofCadbury by Kraftwill generatea joint

portfolio ofmorethan 40 confectionary brands,eachwithannual sales in excess of $100 million,essentially creatingtheworld's biggest confectionary company.

Talents from both organizationstogether can result in bestteamsto work on joint projects.

Thedeal also makesthe new Kraft followed byMars-Wrigleythe confectionery behemothsdominating amarket

withdistant rivals,suchas Ferrero

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Kraft paid 500 pence in cash 0.1874 sharesof Krafts food common stock per cadburyordinaryshare

And2000 pence in cashand 0.7496sharesof Kraft foods common stock per cadburyAmerican DepositoryshareValuationwasdoneas 40%stock & 60%

cashKraft issued265million newshares It paid 13 timesthe companys EBITDA in

2009

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Thedeal was closed in $18.9Bn.

BNPactedasthe joint Leadarranger on

theacquisition bridge facility$11.5 Bn was borrowedwherein RBShad

maximum contribution

Restthroughthesale ofthe bonds by

Kraft