Warren Buffett’s “no” vote against a Kraft (KFT) bid for Cadbury (CBY) raised some eyebrows as to why he had made such decision.
Some people believe that he is protecting his stake in Mars Candy bars. Kraft would have to lower its prices if they acquire Cadbury therefore making it a difficult competition for Mars. It has been said that if Kraft pays too much for Cadbury, then there will be that pressure of them to have higher sales or they can lower prices to have higher sales. This in turn will hurt Mars in the long run and hence create an issue for Mr.Buffett.
British folks as can be seen in the video below largely oppose the idea of such merging. There are many points of views including support and oppositions. However, the fact that the British oppose this merging can have a negative impact on the buying behavior of the candy. Whether Americans and British people would buy the candy if it merges is in question.
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