The European Commission has cleared the proposed acquisition of UK-based confectioner Cadbury by Kraft Foods of the US by way of public offer. However, the decision is conditional upon the divestment of the Romanian and Polish chocolate confectionery businesses of Cadbury.

"In view of the remedies offered, I am satisfied that the proposed takeover would not adversely affect competition anywhere in Europe and that consumers would not be worse off", said Neelie Kroes, EU Competition Commissioner.

Kraft is a worldwide food and beverage company active in more than 150 countries. Cadbury is a worldwide producer and seller of chocolate and sugar confectionery products in over 60 countries.

Both Kraft and Cadbury are important players in the chocolate confectionary business in south-east Europe. With its main chocolate brands Milka, Côte d'Or and Toblerone, Kraft has a very strong presence in most Member States, except United Kingdom and Ireland where consumers prefer the traditional British chocolate.

Cadbury is a market leader in UK and Ireland with its Dairy Milk brand, while in continental Europe it is mainly active in France, Poland, Romania and Portugal through local brands it previously acquired.

Kraft operates in Romania since 1994 after it acquired Brasov-based Poiana Confectionery factory, renamed afterwards Jacobs Suschard Romania S.A. In 2000, Kraft Jacobs Suschard changes name into Kraft Foods Romania.

Kraft is one of the largest food and drinks company in the world with annual revenues of over $37 billion and employs around 100,000. It has over 180 production units across the world. The company is member of the Dow Jones, Standard & Poor’s 500, the Dow Jones Sustainability Index and Ethibel Sustainability Index.

Cadbury Schweppes is active in Romania after it acquired in 2007 the Romanian confectioner Kandia Excelent.