Regulators of the European Union have been offered remedies by Kraft Foods Inc., the Oreo cookies maker, to resolve the antitrust issues that have been marked in its 10.1 Billion Pounds
($16.49 Billion) bid to acquire Cadbury Plc., UK's leading confectioner. As confirmed by the European Commission, after the offer, the competition review of the bid has been extended by 10 business days.
Kraft, which has been trying to takeover Cadbury for quite a few months now, is trying its best to resolve all antitrust problems and effectively clear the path for approval of its offer before possible approval of bids from rivals Hershey Co. or Nestle SA.
Graham Jones, an analyst at Panmure Gordon Ltd. in London, is of the opinion that the EU regulators might have raised concerns about the "dominant position a merged company could have in markets smaller than UK".
"There might be some individual country issues, such as chocolate market share in Poland, but nothing that can't be resolved with a few selective disposal", he said.
No details on what the proposed remedies were have been shared by Kraft, and Cadbury has refused to comment to the situation. No comments from any rival bidder have come as well.
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