Cadbury, the world’s second producer of confectionery, has become a real titbid for Ferrero, Hershey, Nestlé and Kraft Foods. The last one’s recent offer to buy Cadbury for $16.7 billion was rejected, but the stingy giant is not going to give up and is ready to give more just to reach what it wants.
According to Roger Carr, Cadbury’s chairman, it would be much better for the company to merge with Hershey than with Kraft. The reasoning is quite clear: the first manufactures focuses on confectionery, while the second one provides the market with a variety of low-end processed foods.
Nestlé, a famous Swiss food producer, is likely to leave the field of fight soon, as its contenders are combing forces and it would be too hard to play with them and win. Soon the heads of Hershey are going to visit Italy and meet Ferrero’s executives for developing a common strategy.
As for now Cadbury is concentrated on delivering value to shareholders as a standalone pure-play confectioner, and it would give proper consideration to any serious offer that delivers full value for the “sweet” giant.