Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Kraft reaches $19 billion deal for Cadbury



LONDON (CNNMoney.com) -- Kraft reached a $19 billion deal Tuesday to buy Cadbury, finally succeeding in its takeover of the 200-year-old British candy maker after sweetening its offer.

Cadbury's board said it was unanimously recommending the bid to shareholders.

The cash-and-stock offer values each Cadbury share at 840 pence, or about $13.72. Shareholders will also be entitled to a 10 pence dividend per share.

Under the terms of the deal, for each share they own, Cadbury shareholders will receive 500 pence in cash and 0.1874 new Kraft shares.

Cadbury (CBY) shares rose nearly 4% in London.

The deal, which creates a global food behemoth, comes after months of back and forth between the two companies.

Kraft (KFT, Fortune 500) initially launched a $16 billion takeover bid for Cadbury in September. But the company was repeatedly rebuffed by Cadbury.

Kraft, which makes everything from Oreo cookies to American cheese slices, had met resistance from some of its shareholders over its pursuit of Cadbury.

Earlier this month, billionaire investor Warren Buffett, whose Berkshire Hathaway is Kraft's biggest shareholder, voted against Kraft's proposal to issue new shares for its takeover bid. To top of page

Search for Jobs

Index Last Change % Change
Dow 20,810.32 34.72 0.17%
Nasdaq 5,835.51 -25.12 -0.43%
S&P 500 2,363.81 0.99 0.04%
Treasuries 2.39 -0.03 -1.24%
Data as of 8:55pm ET
Company Price Change % Change
Chesapeake Energy Co... 5.75 -0.17 -2.87%
Bank of America Corp... 24.58 -0.21 -0.85%
Boston Scientific Co... 24.48 -0.68 -2.70%
NVIDIA Corp 100.49 -10.27 -9.27%
HP Inc 17.60 1.40 8.64%
Data as of 4:03pm ET
Sponsors

Sections

Boeing unveiled its new, longer 737 Max 9 airliner earlier this month, the second member of the updated single-aisle jet family. The first aircraft will deliver to airlines starting in 2018. More