By Paul Ausick of 24/7
After a four-month pursuit that occasionally got testy, Kraft Foods (KFT) has finally got its prize. British candy maker Cadbury PLC (CBY) has agreed to be acquired by Kraft for about $19.5 billion. In its announcement of the agreement, Kraft noted that the deal “will provide the potential for meaningful cost savings and revenue synergies” that will benefit current Cadbury shareholders.
One thing for sure is that Kraft will be the world’s largest chocolate maker if the deal goes through. There is still a chance that the Hershey Company (HSY) may jump in with a counter offer before Monday’s 7 a.m. deadline. But Hershey may also want to watch its back, because the Kraft-Cadbury deal could turn loose a suitor or two for Hershey itself.