Leadership & People

Kraft to Boost UK Manufacturing Jobs - Mandelson

Kraft Foods Inchas not committed to running Cadbury Plcfrom Britain, but expects to boost manufacturing in the country, British Business Secretary Peter Mandelson said Tuesday.

Kraft made a 11.7 billion pound ($18.6 billion) takeover bid for Cadbury and won control Tuesday after 71.73 percent of the British group's shareholders accepted a deal to create the world's biggest confectioner.

"I did not receive any specific commitment or reassurance that Cadbury's global businesses would continue to be managed or operated from the UK," Mandelson said in a statement after meeting with Kraft chief executive Irene Rosenfeld.

"Ms Rosenfeld confirmed that manufacturing would continue to be located here and she said that she expects that the UK will be a net beneficiary in manufacturing jobs."

Mandelson, who is seeking to protect around 4,500 British jobs at Cadbury, said he would continue to stay in close touch with Kraft to help secure the prospects of the combined company.

Rosenfeld said the takeover would be good for the UK and good for British manufacturing jobs.

"Lord Mandelson was naturally interested in the employment prospects of Cadbury's workers," she said in a statement.

"I made clear to him our belief that the combination of Kraft Foods and Cadbury will be better for UK manufacturing than Cadbury's standalone prospects."

Source: Reuters