LONDON — Kraft Foods’ $19.5 billion deal to buy chocolate and gum maker Cadbury will create the world’s largest candy company, greatly expand Kraft’s share of that lucrative business and open opportunities worldwide to sell its other snacks.
Cadbury shareholders are expected to approve the sweetened deal announced Tuesday, which is to close in February. Ending months of jousting, the bid seems to shut out the Hershey Co., which had been mulling an offer but was seen Tuesday as unlikely to go higher than Kraft’s, which was raised 9 percent to $19.5 billion.
Based in Northfield, Ill., Kraft already is the world’s second-largest food company with such products as its namesake cheese and other packaged foods.
The combined company would have 40 major candy and gum brands and more than $50 billion in annual revenue, and its market share would edge out Mars Co. at the top of the candy industry. The Associated Press
