Kraft, has recruited the services of HSBC and BNP Paribas to help divest it of the Polish and Romanian businesses of Cadbury, according to media reports.

The European Commission gave Kraft clearance in January for the acquisition of Cadbury with the condition that Kraft would have to sell the Romanian and Polish businesses of Cadbury to a third party as the takeover would cause competition concerns in those particular confectionery markets. Kraft’s major brands in Europe are Milka, Cote d’Or and Toblerone, and since these are more in line with continental rather than British tastes (British chocolates are sweeter, milkier and contain vetegable fats rather than cocoa fat), they were not considered by the Commission to be in direct competition with Cadbury’s brands. Cadbury brands dominate the chocolate confectionery market in the UK and Ireland, where Kraft traditionally had a low market share. So the only markets that posed a problem were Poland and Romania, with both companies having a large market share and close competition between their brands, especially in chocolate tablets. Kraft therefore said it would sell Cadbury’s Polish business, marketed under the Wedel brand, and Cadbury’s domestic chocolate business in Romania.

Source: Financial Times, confectionerynews.com