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Sales negotiations news: Concerns voiced over Cadbury/Kraft deal

Concerns have been voiced over a deal between Cadbury and Kraft.

24 May 2011

Sales negotiations between Cadbury and Kraft have hit a stumbling block after a parliamentary committee voiced concerns over the deal.

The Business Innovations and Skills Committee, recently released its Is Kraft working for Cadbury? report, which highlighted issues regarding management and work conditions following Cadbury's takeover by Kraft last year.

Commenting on the release of the document, Adrian Bailey, chair for the committee, welcomed investment from the firm's manufacturing facilities in the UK.

However, he set out a number of issues the body had with Kraft's handling of its hostile takeover.

"We were concerned about a number of regrettable job losses at Cadbury headquarters in the months following the acquisition and about transfer of management functions away from the UK," Mr Bailey said.

He went on to note that Kraft had failed to accept criticism from the Takeover Panel on its handling of the closure of a Cadbury plant in Somerdale last year.

This comes after US regulators opted to approve a proposed deal between building industry giant Caterpillar and mining specialist Bucyrus.

Posted by David Gleck

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