20 Jan 2010

Cadbury job losses inevitable - chairman

4:57 pm on 20 January 2010

Job losses at Cadbury are inevitable after the British chocoloate company agreed to a takeover by Kraft.

The British confectionery maker has given the green light to the deal with the American food giant Kraft. The offer is worth more than $US26 billion.

Cadbury chairman Roger Carr has told the BBC that jobs will go at the company's head office in Uxbridge, London.

The Cadbury board has advised its shareholders to accept a new offer of 840 pence a share for the company.

Kraft has said it expects to achieve cost savings as a result of the merger.

In New Zealand, the Service and Food Workers Union has serious fears about job security at Cadbury's operations in Dunedin and Auckland.

Assistant national secretary Neville Donaldson says the New Zealand operations are only just emerging from earlier restructuring. Any teething problems following the changes are not a fair reflection of the ability of the company to make profits, he says.