Cadbury takes over Kandia-Excelent for 99.5 million euro

Romanian chocolate producer Kandia–Excelent, one of the major local players in the field, was bought by British group Cadbury Schweppes on Friday, in a deal worth €99.5 million.

Rumors that Kandia’s controlling interest was to be sold began circulating on the market last week, and proved true on Friday, when 93.3 percent of the chocolate producer’s capital was involved in two Deal transactions on the Bucharest Stock Exchange.

Majority shareholder, Axis Investments Ltd, sold its 84.16 percent package, while Meinl Bank AG, sold all of its 9.16 percent of Kandia’s capital, both to Cadbury Schweppes.

Following the two transactions, the stock exchange liquidity rose higher than ever since the exchange was created. The shares were transferred on the Deal market at RON 2.90 lei (€0.88) per share, 14.71 percent less than the quotation posted in the previous session.

On the main market, Kandia stock transactions amounted to €0.53 million, with share prices rising 8.82 percent, up to RON 3.70 (€1.12) per share.

Cadbury officials indicated that their interest in Kandia-Excelent is based on the company’s competitive position on the domestic market, and the potential for growth of Romania’s chocolate consumption.

The local chocolate market is worth some €120 million. 

According to estimates made by Business Standard, Kraft Foods Romania is market leader, with a share exceeding 45 percent, followed by Kandia-Excelent, with some 24 percent, and Supreme Chocolat, with some 23 percent.