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09/03/2010 - Kraft under investigation PDF Print E-mail

US firm Kraft is being investigated by the House of Commons business select committee. They want to know if there was a deliberate attempt by Kraft to mislead employees and shareholders in its takeover bid for chocolate maker Cadbury.

The US food giant had said in its initial approaches to Cadbury that the Somerdale factory in Bath would be kept open.

But last month the company made a U-turn and announced that the plant would shut by 2011 - with hundreds of jobs under threat.

Kraft said it was "unrealistic" to reverse Cadbury's plans to shut the Somerdale factory.

It said Cadbury had already spent £100 million on building new facilities in Poland and most production would be transferred by the middle of this year.

Products manufactured at the Somerdale site include Fry's Chocolate Cream, Double Decker, Dairy Milk, Chocolate Buttons, Creme Eggs, Mini Eggs, Fudge bars, Chomp and Crunchie.

Kraft were condedmned last month after it said it would shut a Cadbury factory in Keynsham, near Bristol, a move it had previously said it would avoid if its £11.5bn takeover bid for Cadbury was successful.

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