Kraft and Cadbury Merger

2741 Words11 Pages
Kraft & Cadbury Merger Just 27 months ago Kraft and Cadbury, two of the most exclusive firms in the snack production industry consummated the final merger decision after negotiating for several months. This essay lays out why this merger came to fruition and the reasons it made strategic sense financially. Also, I evaluate numbers from the acquisition, as well and performance over the past couple of years. One of the main aspects to analyze are the financial statements after the merger as well as accounting methodology. Synopsis of Kraft and Cadbury Kraft Foods Inc., also known as KFT, is the highest volume food processing company in the world. In the year 2009, KFT posted over 40 billion dollars in generated revenue. They also sell products in over 160 countries worldwide. Some of their most popular brands include Philly Cream Cheese, Maxwell House Coffees and flavorings, Nabisco, and their mayonnaise, likely the most recognized. Many types of cheeses, packages and frozen meals, breads and candies are all under the Kraft Foods, Inc umbrella. This makes them a very hot commodity for investors, as juggernauts such as Warren Buffett owns about 9.4% of Kraft stock. They are a global phenomenon with over 110,000 employees across the world and large market capitalization. Four years ago, KFT replace AIG after they collapsed as part of the Dow Jones Industrial Average (Ratna, Bhushan, 2010) Cadbury is a British based confection
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