Ferrero declares itself out of the running for Cadbury

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Italian firm Ferrero, which makes Nutella chocolate spread and Ferrero Rocher chocolates, has confirmed that it will not make an offer for British confectionery giant, Cadbury.

Ferreroa��s formal confirmation came last Friday – the deadline for companies to make firm offers.

In a statement, Ferrero said: “Further to its announcement of November 18, 2009, Ferrero International SA confirms that it does not intend to make an offer for Cadbury.”

Ferrero had been considering a joint bid with US-based Hershey Co. Hershey is the largest chocolate maker in the US and is controlled by the charitable Hershey Trust.

The withdrawal of Ferrero will pave the way for Krafta��s A?11.7 billion takeover. Kraft has until 2 February to persuade Cadbury shareholders to accept its offer.

After months of hostile talks, Cadbury last week agreed to the takeover – which was strongly opposed by Business Secretary, Lord Peter Mandelson.

Hours after news of the takeover emerged, Roger Carr, chairman of Cadbury, said job losses were an a�?inevitabilitya�? at the company.

However, the 186-year-old British company, renowned for Dairy Milk chocolate, is set to advise shareholders to accept the latest bid of 840p a share.

Kraft, which is renowned for brands such as Kenco coffee and Oreo biscuits, will pay 840p for each Cadbury share and agree to pay a 10p-per-share dividend.

A combination of the two firms is set create a a�?global powerhousea�? in food and confectionery, with annual sales of around US$50 billion, according to Kraft.

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