US Based Kraft Foods gobbles Cadbury for £11.9 bn

US based Kraft Foods Inc, world's second largest food and beverage giant has bought UK's confectioner Cadbury for £ 11.9 bn, making it the leader in chocolate and sugar confectionary segment. The decision has been taken after four months of struggle on the cost of the deal.

It is said that the reason behind the US giant being so keen on buying UK confectioner was not just to make itself the leader in the segment but also because they have estimated to save at least $ 675 mn annually by the end of the third year.

US chocolate maker Hershey had also shown interest in the deal but could not make it.

Shareholders of Cadbury have been offered £ 5 in cash and 0.1874 Kraft's stock for each share which makes Cadbury value at £ 8.4 per share, with additional 10 Pence dividend. Reports say Cadbury's, Chief Executive, Todd Stitzer, wanted it to be £ 10 a share but dramatically agreed to this cost.