Cadbury Schweppes Up On Renewed Nestle Bid Speculation
As reported by Drinks Business Review Online
Shares in branded food and beverage company Cadbury Schweppes have been lifted by renewed talk that Nestle is eyeing the business as a potential takeover target.
As one of the main blue-chip risers, Cadbury rose 6.5 pence to 555 pence yesterday. Other dealers wondered, however, if a marriage with Nestle would be approved by regulators.
US broker Citigroup told the Guardian newspaper that Cadbury's could also be a target for Hershey's, which has expressed the desire to reduce its dependence on chocolate and develop a presence in emerging markets.
"A deal would combine Hershey's dominant presence in the US with Cadbury's strength in international markets, creating a global confectionery powerhouse with a 16% market share, some 70% larger than Mars," Citigroup told the Guardian.