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Kraft subpoenaed over 2010 takeover of Cadbury

The US food giant, Kraft Food, is facing further legal wrangling over the company’s $19 billion purchase of Cadbury last year.

The US Securities and Exchange Commission (SEC) will open a new case to examine the takeover in the light of an investigation into Indian corporate practice and connected with the Foreign Corrupt Practices Act (FCPA)

The issue centers on a facility that Kraft acquired in Indian when it took ownership of the confectionery brand. In announcing the writ, Kraft have stated that it "primarily requests information regarding dealings with Indian governmental agencies and officials to obtain approvals related to the operation of that facility".

In Kraft’s FCPA disclosure, the Illinois-based company has said, “We initially focused on such high priority areas as food safety, the Foreign Corrupt Practices Act (“FCPA”) and antitrust. Based upon Cadbury’s pre-acquisition policies and compliance programs and our post-acquisition reviews, our preliminary findings indicated that Cadbury’s overall state of compliance was sound. Nonetheless, through our reviews, we determined that in certain jurisdictions, including India, there appeared to be facts and circumstances warranting further investigation. We have undertaken these investigations, which are ongoing.
 

 

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