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Govt 'should not be so permissive over Kraft takeover'



The government should not be so permissive in its attitude over the Kraft acquisition of Cadbury, the deputy leader of the UK Liberal Democrats has claimed.

Vince Cable made his comments after it emerged that the US firm is to close Cadbury's Somerdale factory near Bristol despite initial pledges to keep it in operation.

The food group is transferring production to Poland and the south-west factory will cease operations in 2011.

Responding to the development, Mr Cable remarked: "This case is a very good example of a government indirectly helping a takeover, through the Royal Bank of Scotland which is publicly owned and abdicating all responsibility."

While the state is not in the business of selecting winners and planning industry, he added, it should not allow decisions such as this to be made.

The politician went on to suggest that there is now a very strong case for going back to a public interest test for takeovers.
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