Craft and Cadbury horizontal merger as means of company growth - Essay Example

In 2010, 21 acquisitions have taken place till now and the total value is found to be 1.5 billion dollars. One of the most talked about merger and acquisition in the recent time is the Kraft and Cadbury horizontal merger. This report is all about this merger. The report tries to find out the relationship between the Kraft and Cadbury merger and the growth of both the company. Kraft foods Inc is one of the oldest and largest food and confectionary companies in the world. The company started its journey in the year 1903.

Today the products of the company are consumed by billions of people in over 150 countries in the world. The company employs more than 100,000 people. Cadbury, on the other hand is one of the most popular confectionary company. The company is renowned for three different types of confectionary – chocolate, candy and gum. It started its journey in 18th century and it has its presence in 60 countries. The company employs almost 45,000 people. After the merger between these two giants (Kraft and Cadbury) Kraft foods have become the second leading food company in the world.

It has also become the number one company in confectionary sector. Its total revenue is found to be almost 50 billion dollars. There are eleven brands; value of each of these is found to be 1 billion dollar. Moreover there are more than 70 brands, each of which is a 100 million dollars brand. It is found that 34% of Kraft’s middle and senior level management is women. Furthermore 30 leaders are found to be from 10 different nationalities (Kraft Foods. Building a global powerhouse). As a result it can be said that there is a diverse global team that is running Kraft Foods Inc.

after its merger with Cadbury. In September, 2009 a proposal was made from Kraft foods Inc. to the Cadbury Inc.’s board regarding the merger of two companies. According to CNN, on September