MPs to launch inquiry into Kraft takeover of Cadbury

A COMMITTEE of MPs is to investigate the controversial takeover of Cadbury by Kraft following the news that the US food giant plans to shed 400 jobs at a factory it had originally promised to maintain.

The House of Commons' business select committee will interrogate senior Kraft officials early next month following the revelation that it plans to shut down Cadbury's Somerdale plant, near Bristol.

The factory had already been earmarked for closure by Cadbury but Kraft had promised to maintain employment at the base as one of its key pledges in its takeover bid. Campaigners discovered that the US giant planned to renege on its promise after the 11.5 billion takeover had already received the go-ahead from shareholders.

Peter Luff, chairman of the committee, said: "Fresh hope was given by the government and Kraft about this factory and it is time someone took them to task. We also want to know what Kraft's plans are for Cadbury and whether we can trust them."

The committee is also due to hear from officials from Unite, the union, which organised a protest on the day the deal went through earlier this month in Westminster.

Hundreds of Cadbury workers turned out, urging shareholders to keep the chocolate manufacturer in British hands. They also urged the government to create a "Cadbury Law" to prevent any further British companies from falling into foreign hands.

Unite yesterday welcomed the parliamentary inquiry, calling the Cadbury deal the "most unpopular corporate takeover" in recent times.

Jack Dromey, deputy general secretary of Unite, said: "In the past week Kraft has shocked Britain by blithely backtracking on promises made on Cadbury jobs, and two more Cadbury directors cash in handsomely on the sale. Our lawmakers must hold those responsible to account.

"The committee's intervention must now bring us one step closer to securing cast-iron guarantees for the future and a Cadbury Law because never again should one of this country's manufacturing jewels succumb to a hostile takeover."

Jennie Formby, Unite national officer for food and drink, added: "Both companies, but particularly Kraft, have many important questions they must answer to the people of this country, not least to 6,000 very anxious workers.

"They are reeling from Kraft's cynical misuse of the Somerdale workforce to deflect public hostility to their bid and are now asking can this company be trusted to honour redundancy pledges made too."