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EDITIONS
 Tuesday, 17 December, 2002, 07:16 GMT
Cadbury agrees 2.7bn takeover
Cadbury's chocolate bar
Cadbury Schweppes has agreed to buy Adams confectionery for 2.7bn ($4.2bn).

Adams gives us confectionery market leadership

John Sunderland, Cadbury chief executive
It is the company's biggest acquisition and will make it the world's joint leader in overall confectionery.

The deal will give Cadbury control of the world's second-biggest chewing gum business with brands such as Dentyne, Chiclets and Trident as well as the bubble gum brands Bubblicious and Bubbaloo.

Cadbury will also get the Hall's cough sweet brand along with breath freshners including Certs and Clorets.

Too much?

"Adams gives us confectionery market leadership and a unique portfolio with an offering in every confectionery category," said Cadbury's chief executive John Sunderland.

He said the deal brought powerful brands and would create significant value for shareholders.

The company faced competition for Adams from the Swiss food giant Nestle and Kraft Foods of the US.

Many analysts had valued Adams at about $4bn, so there could be questions about whether the British confectionery and drinks firm has paid too much.

Shares in Cadbury Schweppes closed down more than 5% at 388 pence.

  WATCH/LISTEN
  ON THIS STORY
  David Liston, Gerrards
"Adams particular strength is in sugar-free gum."
See also:

02 Sep 02 | Business
17 Jul 02 | Business
13 Feb 02 | Business
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