Kraft announces sale of Wedel to Japanese Lotte Group
Kraft Foods said yesterday that it had agreed to sell Cadbury's Poland-based E. Wedel brand chocolate and confectionary operations to the Japanese Lotte Group, which makes chewing gum, for an undisclosed sum.
Claiming annual revenues of some 40 billion dollars (32.5 billion euros), the Tokyo-based Lotte Group, ranks as the biggest chewing gum manufacturer in Asia and the third biggest in the world.
"The sale, which is subject to customary regulatory approvals, includes the E. Wedel business, its related brands and a manufacturing facility in Warsaw," said the statement published on the Kraft website.
The divestment follows approval by the European Commission for Kraft Foods' acquisition of Cadbury plc on the condition that Kraft sell of Cadbury E. Wedel in Poland and another Cadbury unit in Romania in compliance with EU anti-monopoly regulations.
"Approximately 1,000 Cadbury Wedel employees will transfer to Lotte Group," it said.
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