In a startling development it has been revealed that the Panel on Takeovers and Mergers is looking into the takeover of Cadbury by Kraft Foods. It is believed the authorities have received complaints regarding comments made during the bidding period when Kraft Foods appeared to indicate that the company’s Somerdale's plant would remain open despite the fact that Cadbury itself had earmarked the operation for closure.

After the company was successful in acquiring Cadbury a U-turn was announced whereby the original decision by Cadbury to close the plant in question was upheld. It is unclear exactly what the authorities may or may not do if the company is found to have "misled" investors during the bidding period because ultimately situations change and Cadbury had itself initially earmarked the plant for closure.

There is no doubt that the Kraft Foods acquisition of Cadbury has become one of the more controversial of recent years with the UK government apparently concerned about job prospects for the existing Cadbury UK operations. There has been some suggestion of potential protection rules and regulations in the future which would safeguard UK employment in the event of future takeovers but ultimately this goes against the grain of a free market and is unlikely to be adopted.

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