EU Conditions Kraft’s Acquisition Of Cadbury On Divestment Of Polish, Romanian Businesses

„The Commission identified competition concerns within chocolate confectionery in Poland and Romania, where the combined market share of Kraft/Cadbury is particularly high and their brands are competing closely, in particular in the chocolate tablets markets”, EU’s executive arm said in a statement.

Thus, Kraft committed to divest Cadbury’s Polish confectionery business marketed under the Wedel brand and Cadbury’s domestic chocolate confectionery business in Romania.

„In view of the remedies proposed, the Commission has concluded that the operation would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it”, Competition Commissioner Neelie Kroes said.

Both Kraft and Cadbury are strong players in the chocolate confectionary business in the EU states. Kraft’s main chocolate brands are Milka, Côte d’Or and Toblerone, while Cadbury’s main brand is Dairy Milk.

Kraft launched back in September an offer to buy Cadbury, which has yet to gain the latter’s shareholders approval. The offer values the UK chocolate maker at about 10 billion pounds (EUR11 billion).