The Recent Controversial Acquisition of Cadbury by Kraft Foods

The influential factor of globalization has almost discarded the international geographical borders as the companies of today are multinational in nature, having not only selling offices and units overseas but also their manufacturing units and production offices.

The other major trend that has been observed off late has been that of mergers and acquisitions. It is regarded by the industry that in order to ensure sustainable development in the ever-changing business environment of today, the similar-sized companies often come together to consolidate willingly to share know-how, resources, market and other technical issues, known as mergers. When a large-sized company tries to buy out a smaller sized company for the above reasons, it is termed as acquisition. Through mergers and acquisitions are increasingly felt as indispensable in the present scenario, the fact is that even 10% of the mergers and acquisitions that happened in the last two decades all across the globe, did not prove successful. The recent controversial acquisition of Cadbury by Kraft Foods has been on the headlines since the process started off in 2009. The essay deals with the various related issues of this hostile acquisition.

It was in the year of 1824 when a budding entrepreneur of England, named John Cadbury opened a shop in the city of Birmingham that sold the products of cocoa (tea and coffee) and drinking chocolate. During the initial years, Cadbury was a partnership between John and his brother, Benjamin and was known as ‘Cadbury Brothers of Birmingham’. In the year of 1854, the Cadbury brothers moved to London to set up an office at the capital. In 1861, the founder of this future prestigious brand, John Cadbury retired from his office and was replaced by the two sons, Richard and George. The war years were tough for this chocolate manufacturing company as they were closely&nbsp.supervised by the government.