By Neha Mehta

To

break into emerging markets Cadbury being the holder of the highest market share in sweets with over 300 product portfolios, and Krafts will to expand in sweets market. To increase its market share

It will result in having a global market share of 14.9% It will result in becoming No.2 company globally in highgrowth gum market. It will bring Chocolate and gums under one roof i.e. expanding under the sweet segment. The acquisition of Cadbury by Kraft will generate a joint portfolio of more than 40 confectionary brands, each with annual sales in excess of $100 million, essentially creating the world's biggest confectionary company. Talents from both organizations together can result in best teams to work on joint projects. The deal also makes the new Kraft followed by MarsWrigley the confectionery behemoths dominating a market with distant rivals, such as Ferrero

 Kraft

paid 500 pence in cash 0.1874 shares of Krafts food common stock per cadbury ordinary share And 2000 pence in cash and 0.7496 shares of Kraft foods common stock per cadbury American Depository share Valuation was done as 40% stock & 60% cash Kraft issued 265million new shares It paid 13 times the companys EBITDA in 2009

 The

deal was closed in $18.9 Bn. BNP acted as the joint Lead arranger on the acquisition bridge facility $11.5 Bn was borrowed wherein RBS had maximum contribution Rest through the sale of the bonds by Kraft