M&A activity finally appears to be coming back to life, at least if Kraft?s $16.7 billion takeover bid for Cadbury is an indicator.

Cadbury?the world?s leading confectionery company?has almost become a synonym to the word ?chocolate?. Generations of kids have grown up with the taste of Cadbury?s Dairy Milk chocolate bars wrapped in purple with the company?s swirl logo. When John Cadbury opened his first shop in 1824, little did he know it would grow into a global company with over 45,000 employees in over 60 countries. The 185-year-old company is a brand that Britons have patronised since the Victorian age. Now, will it become a US brand, is a question that many Britons are asking?

British companies have been the most popular takeover targets, largely because the government has been liberal with the rules. The value of British take-overs by foreign companies leapt to a record high of ?49 billion in Q2, 2007. Apart from liberal government policies, takeovers have been facilitated by Britain?s well-developed financial markets, locational advantage and true shareholder democracy culture. Nearly all of what were British manufacturing & infrastructure companies and even some of the football clubs are owned by foreigners. Some of the prominent takeovers include Dubai Ports World?s purchase of P&O, Macquarie?s purchase of Thames Water, Abbey National Bank was bought by a Spanish firm, Ferrovial?s purchase of BAA, Linde?s takeover of BOC, Tata?s takeover of JLR and CSN?s purchase of Corus.

The latest Kraft-Cadbury bid has set the stage for a battle that could potentially lead to a dramatic reordering in the global candy market. If Kraft?s bid is successful, Cadbury is almost certain to lose its independence and its ?Britishness?. Felicity Loudon, company?s fourth generation member, also stated in The Sunday Telegraph that she fears the loss of the legacy of values her forebears have imbibed. She was desperately sad about the fact that another British icon would be in foreign hands. However, in today?s world of globalised business, nostalgia is likely to be confined to the sidelines.

?jaya.jumrani@expressindia.com