Mondelez agrees to acquire global licence of Cadbury-branded biscuits

Snack manufacturer Mondelez has agreed to acquire the global licence of Cadbury-branded biscuits including Cadbury’s Fingers, from Burton’s Biscuit Company.

Although the transaction amount has not been officially divulged, media reports claim that the deal is estimated to be around £200m.

The acquisition of the global licence will enable Mondelez to manufacture and sell Cadbury-branded biscuits worldwide.

According to a co-manufacturing deal, Burton’s will manufacture Cadbury-branded biscuits at its facilities.

This move comes after Hershey rejected a $23m acquisition offer from Mondelez.

Mondelez owns brands such as Oreo, LU and Nabisco.

The deal requires regulatory approval.

Burton’s was quoted by The Guardian as stating that this deal will enable it to 'implement a transformational growth plan across its core brands, including Maryland, Jammie Dodgers, Wagon Wheels and Fish’n’Chips, and continue to invest in innovation to grow'.

Two years ago, the two firms held negotiations as Burton’s was planning to divest its Cadbury biscuits unit in order to acquire McVities' brandowner UB; however, the talks failed and UB was acquired by Turkish firm Yildiz for £2bn.

A few months ago, talks resumed between Mondelez and Burton’s, in which Ontario Teacher’s Pension Fund owns a majority stake.