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Cadbury

I well understand and appreciate the level of concern that this proposal is causing to local MPs and others across the country. I want to turn to the takeover itself. It is important to set out the facts relating to it. The Cadbury board has now recommended acceptance of the final takeover from Kraft Foods, which values Cadbury at £11.9 billion. That takeover would create the world's largest confectioner. Kraft must secure more than 50 per cent. of shareholder votes by 2 February for its bid to succeed. That is where we are. As I have said, we are acutely aware of the strength of feeling generated by the takeover, which we have seen in the wider media, the debate this evening and in the House over the past few weeks. Cadbury is a long-established company with a committed work force that are performing well. It is a significant business with an extraordinary heritage and many stakeholders, both in this country and around the world. As Members have said, it is very early to discuss what might happen after the merger process is complete. Kraft needs to make its plans clearer. Kraft has made encouraging noises about its respect for Cadbury's brands, heritage and people. In a conference call with investors on 19 January, Kraft's chief executive, Irene Rosenfeld, said:""We will continue with a significant presence in the UK and reiterate our previous statements of safeguarding the operations in both Bourneville and Somerdale. We will be a net importer of UK jobs and will continue to have a strong presence here."" It now has to be very clear about what it will put into Cadbury to build its capacity for growth. I know that my noble Friend the Secretary of State for Business, Innovation and Skills will be having an early meeting with Kraft senior management. He will be looking to hear how Kraft will fulfil the commitment it has made to the Cadbury work force and to the company's long-term future. Our Government offices and regional development agencies are also in touch with Cadbury and are pursuing further information from Kraft.