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Wednesday, 20 January 2010 10:29 |
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One has to ask what it's all about!
Kraft pays £billions for Cadbury, but not with real money - in the sense that they are borrowing £7 billion to finance the deal. This seems like lunacy.
Kraft says they can see £600 million in savings, basically that means moving production away from a high-cost country like the UK to cheap places like eastern europe - remember Terry's of York - it's now Terry's of Poland and Slovakia and there are no longer UK factories supporting UK people.
At the moment interest rates are low - so what happens when they rise to previous levels - the answer is obvious, more cutbacks and cost saving measures. In reality it seems pointless to saddle a company with such a vast amount of debt, Cadbury's management must be sick as a parrot seeing this once great company going the way of so many British enterprises.
Kraft has no real interest in the UK or the heritage of Terry's, Cadbury's or any other UK company, so we see the UK government powerless as the profits of our industry are exported to the US whilst the UK picks up the redundancy bills, dole payments and housing benefits as the staff are dumped.
Well done Gordon!
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