Sweet deal

Shareholders representing almost three quarters of Cadbury supported the deal, following the agreement of the firm's board last month to a sweetened offer from Kraft. The improved cash-and-shares bid worth 11.9 billion pounds ($19 billion, 13.6 billion euros) - or 850 pence per share - ended a bruising five-month takeover battle.

Holders of almost 72 percent of the British chocolatier's stock accepted the takeover that will create the world's biggest confectioner.

Kraft needed just 50 percent plus one share to take control of Cadbury. Kraft Chief Executive Irene Rosenfeld expects to complete the deal in the coming weeks as remaining Cadbury shareholders come forward to accept the cash and stock bid.

But fears were mounting for the future of around 5,600 staff at eight Cadbury factories in Britain and Ireland, as well as tens of thousands of jobs around the world.

A powerhouse of snacks

The takeover makes Kraft one of the biggest global players in chocolate and confectionery, giving it major brands like Creme Egg and Trident chewing gum to go with Kraft's Toblerone, Milka, Suchard and Cote d'Or. "The combination of Kraft Foods and Cadbury creates a global powerhouse in snacks, confectionery and quick meals," said Rosenfeld, credited with masterminding the takeover.

Kraft promised $675 million of annual cost savings from the deal, which means some of Cadbury's 45,000 workers around the world will lose their jobs, analysts said.

Job fears

After a meeting late Tuesday with Rosenfeld, British business minister Peter Mandelson said he was "disappointed" that she had failed to commit to running Cadbury's global operations from Britain.

"I was disappointed that she was unable to confirm that Cadbury's confectionery brands will continue to be managed and operated globally out of Britain," said Mandelson in comments to British broadcaster BBC. He vowed to seek "much harder, more specific commitments in the next three to six months" from the American giant.

Rosenfeld was defensive about the potential redundancies. "The discussion of the UK job situation has been very exaggerated," she said. "We actually expect this will be a net positive for the UK."

Earlier in the day, Jack Dromey, deputy general secretary of Britain's biggest trade union Unite, called for "cast-iron guarantees" over the future of Cadbury workers. "This is a sad day," Dromey said at a demonstration against the Kraft takeover. "A world-class sector of British excellence is being taken over by a debt-laden US company."

Cadbury, which began as a small grocer's shop in Birmingham, central England, in 1824, has grown into a global operation spanning 60 countries with 45,000 employees. Kraft, which traces its history to 1903 when JL Kraft started selling cheese from a horse-drawn wagon, also makes Oreo biscuits and Kraft Singles cheese slices.

Cadbury's annual sales are only one-fifth of Kraft's, but the British group will contribute to growth in a combined company with more than $50 billion in sales. Kraft will still be the No. 2 food group after Nestle, but will edge past Mars Inc to be the world's top confectioner.

bk/AFP/Reuters
Editor: Rob Turner