MPs still angry at Kraft over Cadbury takeover

Politicians still have "significant concerns" about the takeover of chocolate maker Cadbury by Kraft, according to a report released more than a year after the controversial £11.5 billion swoop.

The business, innovation and skills select committee at Westminster has also heavily criticised the US food giant's chief executive for her "regrettably dismissive attitude" in refusing to give evidence to the panel.

The report - entitled Is Kraft working for Cadbury? - said the committee members were left frustrated when Irene Rosenfeld turned down repeated requests to appear either in person or by video-link to give assurances about future employment levels at Cadbury.

Hide Ad
Hide Ad

It also slammed the US group for failing to accept criticism from the Takeover Panel of its U-turn on promises to keep open Cadbury's Somerdale plant.

Kraft's takeover in February 2010 triggered political and union anger and kicked off a government review of foreign takeover rules. Rosenfeld did not make her first visit to Cadbury's historic base in Bournville to meet management and employees until October of last year.

The select committee's ongoing concerns are about the transfer of marketing decisions to Kraft's European headquarters in Zurich and the plan for pay harmonisation, which the committee stressed would have to take place with union involvement. However, the committee said it was "encouraged" by continued investment in Bournville.