Kraft, the world's second-biggest food maker, with annual revenues of more than €23.6 billion, will add Danone's Petit Ecolier chocolate biscuits and TUC crackers to its own Oreo and Ritz brands. Kraft Foods announced that it has signed final agreements to acquire the global biscuit business of Groupe Danone for €5.3 billion in cash. This follows the announcement of Kraft's offer in July which, according to French law, was subject to consultation with Danone's works councils. Completion of the transaction is subject to customary closing conditions, including approval of regulatory authorities in the countries concerned and the European Commission. Both companies anticipate that the transaction will close by the end of the year.

Kraft CEO, Irene Rosenfeld, who took over in June 2006, intends to expand outside the US and may be pushed to accelerate acquisitions by Nelson Peltz, the billionaire investor who owns 3% of Kraft.

Kraft markets a broad portfolio of iconic brands in 155 countries, including seven brands with revenue of more than US$1 billion, such as Kraft cheeses, dinners and dressings; Oscar Mayer meats; Philadelphia cream cheese; Post cereals; Nabisco cookies and crackers; Jacobs coffees and Milka chocolates.

Related articles:
Kraft makes bid for Danone biscuit division
Danone’s acquisition bid rewards Numico’s board