After a four-month fight, the US food company Kraft finally acquired the British chocolate producer Cadbury. This $19.5 billion take-over has been approved by Cadbury's board, thus creating the world’s biggest chocolate maker according to Cadbury’s website.
Prior to the acquisition, Kraft was the largest candy, food, and beverage company headquartered in the United States and the second-largest in the world (after Nestlé SA) which markets nine brands each with annual revenues exceeding $1 billion. More than 50 additional brands belonging to Kraft have revenues greater than $100 million in more than 155 countries. Cadbury was a British confectionery and beverage company and the world's second largest confectionery manufacturer after Mars/Wrigley, with operations in over 60 countries under famous brands like Cadbury, Trident and Halls.

The combination of these two giants of the food industry has attracted a lot of attention. According to Kraft’s “Recommended Final Offer” released on 19 January 2010, Kraft expects to create a global leader in the global foods and confectionery sector by building up a strong and complementary strategic fit with a portfolio of more than 40 confectionery brands each with annual sales in excess of USD 100 million after the acquisition¹.
Apart from its wish to minimize its large liabilities through the revenue of the combined company, Kraft also sees potential through the consolidation of confectionery segments. For example, Kraft wants to take advantage of Cadbury's fast-growing emerging-market operations, especially in Brazil, India, and China, to speed up its sluggish growth in developing countries and bolster its position in chewing gum specifically. In addition, Kraft hopes to gain from the enhanced distribution channel for its brand to gain more recognition with world consumers. Furthermore, the combined company Kraft/ Cadbury will be able to compete with Mars/Wrigley in the confectionery market.

So will Kraft’s beautiful dream come true? Since the company’s massive debt has been increased even more by the purchase of Cadbury, whether it has the ability to keep its promise of taking care of the world-loved brand Cadbury is a concern for shareholders. Let’s hope with a deal this big the companies not only did their math, but their market research and brand strategy development as well. 

1. http://www.cadburyinvestors.com/cadbury_event/main-events/2010-01-19/201...