Business
Hershey Works On Solo Bid For Cadbury
The Hershey Co. is assembling a bid to acquire British candy maker Cadbury PLC without the help of Italian candy maker Ferrero International, a person familiar with Hershey’s plans told The Associated Press on Wednesday.
Meanwhile, the company that bid first, American food giant Kraft, continued to defend its offer and issued an earnings forecast that may have been intended to show off its strength.
Hershey has been working on two parallel bids for Cadbury, one with Ferrero and one on its own. But Ferrero reportedly has withdrawn. Hershey is still crafting its own potential bid, one designed to top the $16.5 billion hostile offer from Kraft Foods Inc., the person familiar with Hershey said.
The person, who spoke on condition of anonymity because the person was not authorised to speak publicly about the matter, said Hershey hoped to avoid a bidding war by waiting until Cadbury’s shareholders make a decision on Kraft’s bid.
Kraft has until February 2 to win support from a majority of shareholders. It said last week that it had received acceptance from holders of 1.5 percent of Cadbury shares to date. Kraft’s deadline to increase its bid is January 19.
A spokesman for the maker of Hershey’s Kisses and Reese’s peanut butter cups said that, as a matter of policy, the company does not comment on merger and acquisition issues.
Cadbury shares rose, adding 12.5 pence, or 1.6 percent, to close at 789.50 on the London Stock Exchange. Hershey shares fell $1.14 to $36.61 in trading Wednesday.
An Italian business daily reported Wednesday that Ferrero International SA is no longer interested in bidding for Cadbury. The paper, il Sole 24 Ore, cited unidentified sources close to the family-run Italian firm.
Ferrero did not comment on the report.
Any bid for Cadbury would involve bringing jobs and assets to Hershey, while voting control of the company would remain with the charitable trust set up by its late founder, Milton S. Hershey, the person said.
In addition to borrowing money, a Hershey acquisition of Cadbury may require the issuance of new shares. However, the Hershey Trust Co. has maintained that it will not give up control of the company, a stance that analysts say limits the company’s flexibility to grow through a merger.
In November, Hershey and Ferrero told the London Stock Exchange they were considering an offer for Cadbury but cautioned one might not materialise.
Without a well-financed partner, analysts question how Hershey, America’s most recognisable name in chocolate, alone can afford the acquisition of the larger Cadbury.
Hershey posted revenue of $5.13 billion in 2008, while Cadbury reported $7.8 billion in 2008.
On Wednesday, Kraft maintained that it would be the best partner for Cadbury. Kraft shares fell 6 cents to $29.23.
If Kraft does win Cadbury, it would combine the world’s second-largest food maker with one of the world’s largest confectioners.
But Kraft, based in Northfield, Ill., is under pressure from its biggest shareholder, billionaire investor Warren Buffett, not to sweeten its offer with more shares, which he believes are undervalued. And it’s unclear what move Kraft will make now.
Analysts, worrying Kraft will overpay if it gets into a bidding war and wouldn’t see long-term gains from an acquisition as a result, have been cautious.
Cadbury has staunchly opposed a Kraft takeover. On Tuesday, Cadbury’s brass again urged shareholders to vote against the deal and criticized Kraft’s business model.
But Tuesday’s boost in Kraft’s full-year profit outlook was the second in two months. After logging profit gains, Kraft now expects to report earning at least $2 per share for 2009. It earlier forecast profit of at least $1.97 per share. The new outlook is in line with analyst expectations, but some analysts were critical.
“It’s a blatant attempt to spin the news,” said D.A. Davidson & Co. analyst Tim Ramey. Kraft moved its guidance to meet Wall Street expectations on a quarter that ended two weeks ago, he said.
Kraft may also be setting the stage for a graceful exit from bidding for Cadbury.
Edun made the call while speaking at the 2025 Fellowship Investiture of the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos, where he reaffirmed the federal government’s commitment to sustaining ongoing reforms and expanding access to finance as key drivers of economic growth beyond four per cent.
“We all know that monetary policy under Cardoso has stabilised the financial system in a most commendable way. Of course, it is a team effort, and those eye-watering interest rates have to be paid by the fiscal side. But the fight against inflation is one we all have to participate in,” he said.
The minister stressed the need for banks to broaden credit access and finance innovation-driven enterprises that can create jobs for young Nigerians.
“The finance and banking industry has more work to do because we must finance their ideas, deepen the capital and credit markets down to SMEs. They should not have to go to Silicon Valley,” he said.
The minister who described the private sector as the engine of growth, said the government’s reform agenda aims to create an enabling environment where businesses can thrive, access funding, and contribute meaningfully to job creation.
The facility, known as the Nigeria Actions for Investment and Jobs Acceleration (P512892), is a Development Policy Financing (DPF) operation scheduled for World Bank Board consideration on December 16, 2025.
According to the Bank’s concept note , the financing would comprise $500m in International Development Association (IDA) credit and $500m in International Bank for Reconstruction and Development (IBRD) loan.
If approved, it would be the second-largest single loan Nigeria has received from the World Bank under President Bola Tinubu’s administration, following the $1.5 billion facility granted in June 2024 under the Reforms for Economic Stabilisation to Enable Transformation (RESET) initiative.
The World Bank said the new programme aims to support Nigeria’s shift from short-term macroeconomic stabilisation to sustainable, private sector–led growth.
“The proposed Development Policy Financing (DPF) supports Nigeria’s pivot from stabilization to inclusive growth and job creation. Structured as a two-tranche standalone operation of US$1.0 billion (US$500 million IDA credit and US$500 million IBRD loan), it seeks to catalyse private sector–led investment by expanding access to credit, deepening capital markets and digital services, easing inflationary pressures, and promoting export diversification,” the document read.
The document further stated that Nigeria’s private sector credit-to-GDP ratio stood at only 21.3 per cent in 2024, significantly below that of emerging-market peers, while capital markets remain shallow, with sovereign securities dominating the bond market.
To address these weaknesses, the DPF will support the implementation of the Investment and Securities Act 2025, operationalisation of credit-enhancement facilities, and introduction of a comprehensive Central Bank of Nigeria rulebook to strengthen risk-based regulation and consumer protection.
The operation also includes measures to deepen digital inclusion through the passage of the National Digital Economy and E-Governance Bill 2025, which will establish a legal framework for electronic transactions, authentication services, and digital records.
Beyond the financial and digital sectors, the programme targets reforms to lower production and living costs by tackling Nigeria’s restrictive trade regime. High tariffs and import bans have long driven up consumer prices and constrained competitiveness, particularly for manufacturers and farmers.
Under the proposed reforms, Nigeria would adopt AfCFTA tariff concessions, rationalise import restrictions, and simplify agricultural seed certification to increase the supply of high-quality varieties for maize, rice, and soybeans. The World Bank projects that these measures will help reduce food inflation, attract private investment, and enhance export potential.
The operation is part of a broader World Bank FY26 package that includes three complementary projects—Fostering Inclusive Finance for MSMEs (FINCLUDE), Building Resilient Digital Infrastructure for Growth (BRIDGE), and Nigeria Sustainable Agricultural Value-Chains for Growth (AGROW)—all focused on expanding access to finance, strengthening institutions, and mobilising private capital.