Kraft unveils six potential buyers for Wedel

2010-06-14

In the next two months, the American concern Kraft Foods will name the purchaser of Wedel, the well-known Polish confectionery producer. The American giant is obliged to sell chocolate businesses in Poland and Romania, after the acquisition of Cadbury, the prominent British concern. The potential buyers include two investment funds, Bridgepoint and Advent International, along with four food companies, Nestle, Hershey - an American chocolate producer, Roshen - a Ukrainian confectionery manufacturer, and Jutrzenka, a famous Polish producer of sweets. The management of the latter firm has not, however, confirmed the information.
Jutrzenka might find it difficult to rival giants such as Nestle and Hershey, as the cost of the transaction could be very high. Market representatives estimate that the Wedel acquisition could cost PLN 800m (€200m).
Wedel is the runner-up on the confectionery market in Poland, whereas the third largest player is Jutrzenka. After the merger the two companies could gain pride of place in Poland, surpassing Kraft, which controls 21% of the market.