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Abstract(s)
The aim of this dissertation is to focus on a determinant aspect of Corporate Finance that is
Mergers and Acquisitions (M&A). This dissertation not only provides a practical analysis of
main issued regarding a process of M&A, but also provides a theoretical framework about
M&A.
Specifically, this dissertation explores the real case of Kraft Foods - world’s second largest
manufacturer and packager food products – and Cadbury - the world’s second largest
confectionery firm.
Despite Food & Beverage Industry being a non-cyclical industry is a highly competitive one,
where players compete for price, quality, innovation, brand recognition and loyalty.
Together, Kraft Foods and Cadbury will become the largest manufacturer and packager food
products in the world. Benefiting from economies of scale, Kraft Foods will be more efficient
and better price competitive than its competitors.
Kraft Foods should acquire Cadbury through a tender offer. Synergies are estimated to be 25%
of Cadbury’s market capitalization at 9th of November of 2009. The price offered should be
£7.93 for each Cadbury’s share. To conclude, Kraft Foods should pay 88% in Debt and 12% in
Cash through an emission of more than 90 million new shares.