Mondelēz International has agreed to buy the global licence for Cadbury-branded biscuits from Burton’s Biscuit Company.
The takeover is aimed to sell more and combine chocolate and biscuits in new products. The details of the takeover have not been disclosed, but the fee is thought to be around £200m following discussions between the the two companies over the past month.
The deal will allow Mondelēz to make, market and sell Cadbury-branded biscuits worldwide, though the biscuits will continue to be manufactured in Burton’s factories under a co-manufacturing agreement.
Hubert Weber, head of Mondelēz Europe, said: “The transaction will enable us to explore delicious new products by using the best of our chocolate and biscuit innovation platforms.”
The two groups first held talks two years ago as Burton’s, backed by Canadian fund Ontario Teachers’ Pension Plan, was considering selling the Cadbury business to help in its bid to acquire McVitie’s owner United Biscuits. However, the talks came to nothing when Yildiz beat Burton’s to the punch and bought UB for £2bn in 2014.
The Mondelēz purchase of the Cadbury licence from Burton’s is subject to regulatory approval.