The Commission has cleared the proposed acquisition of Cadbury plc of the UK by Kraft Foods Inc. of the US, by way of public offer.

The Commission found that while the market share of Cadbury is very significant in the UK and Ireland, the penetration of Kraft's brands in these markets remains low. In addition, Kraft's and Cadbury's brands do not compete closely with each other, given the strong preference of UK and Irish customers for traditional British chocolate as opposed to "continental types" of chocolate. Therefore, there were no competition concerns in the UK and Irish markets.

The Commission did however identify competition concerns within the market for chocolate confectionery in Poland and Romania, where the combined market share of Kraft/Cadbury is particularly high and their brands are competing closely. In order to remedy these concerns, Kraft committed to divest Cadbury's Polish confectionery business marketed under the Wedel brand and Cadbury's domestic chocolate confectionery business in Romania. The Commission concluded that the remedies addressed the competition concerns and therefore the operation was cleared under the EU Merger Regulation.

IP/10/3 – 6 January 2010