Kraft offers EU ‘remedies’ for Cadbury deal

BRUSSELS: Kraft Foods offered European Union regulators remedies to resolve antitrust issues in its proposed £10.1-billion bid for UK confectioner Cadbury.

The European Commission, the EU’s antitrust authority, said in a statement on Wednesday that it extended the competition review of the deal by 10 working days following the offer.

Kraft is trying to resolve antitrust issues and clear the path for approval of its bid before possible rival offers from Hershey or Nestle. The EU antitrust regulator may have raised initial concerns about the dominant position a merged company could have in markets smaller than the UK, said Graham Jones, an analyst at Panmure Gordon in London.

“There might be some individual country issues, such as chocolate market share in Poland, but nothing that can’t be resolved with a few selective disposals,” said Graham Jones, an analyst at Panmure Gordon in London.

Richard Jacques, a London-based spokesman for Kraft, declined to comment on what remedies Kraft had submitted. Calls to London-based Cadbury’s press office weren’t immediately returned.

Kraft notified EU regulators of its unsolicited takeover offer for Cadbury in November. The EU will rule by January 6.
Kraft’s bid triggered interest from other food companies. Hershey, the maker of Twizzlers, and Ferrero, the Italian maker of Tic Tacs and Nutella spread, said in November they were evaluating options regarding Cadbury.

Hershey has been in contact with Nestle, the world’s biggest food company, regarding a bid, according to people familiar with the situation.