After a four-month stand off over price Kraft Foods is buying British candy maker, Cadbury.
Kraft sweetened its cash offer to win over its overseas rival and reduced the stock offered to make Warren Buffet, its largest shareholder, happy.
At a price of US$19.6 billion, and the Cadbury board's blessing, Kraft becomes the largest confectioner in the world.
Analysts widely applauded the deal as a win for both companies. The merger gives Cadbury a greater U.S. presence. For Kraft, the merger expands its global reach into markets such as India and Latin America.
Suzanne Stevens, Senior Editor at the Deal, says Kraft's CEO who also oversaw another international acquisition with Danone, deserves a lot of credit.
"The people I talk to the people who watch M&A, the people who negotiate these deals do think that Irene Rosenfield has done a really strong job in guiding the company through what has been, you know, at times a contentious bid for a cross border rival," says Stevens.
As far as favourite candy bars and sweets, analysts say consumers will likely see little change in prices or product offerings.
But the toothsome tieup for some will likely prove to be a sticky problem for Pennsylvania-based Hershey's. With Cadbury off the table, it will be much tougher to grow its international business.
"Hershey could look to acquire or establish joint ventures with local or regional players in growing and devloping in emerging markets. However, this would not provide the scale benefits that a deal with Cadbury would have provided," says Morningstar analyst, Erin Swanson.
A Hershey bid is not expected and with virtually no regulatory hurdles analysts say the deal is now in the hands of Cadbury shareholders.