UPDATE: Kraft Foods To Focus On Integration, Repairing Damage

With Kraft Foods Inc's (KFT) GBP11.9 billion purchase of Cadbury PLC (CBY) now complete, the U.S. food giant's focus will shift to integrating the U.K. confectioner and repairing the damage caused by four months of acrimonious battle.

Kraft Foods Tuesday declared its 850 pence a share bid for Cadbury unconditional after securing acceptances from shareholders representing 71.73%, or 987,684,041, of Cadbury's shares.

"The combination of Kraft Foods and Cadbury creates a global powerhouse in snacks, confectionery and quick meals. Together we have impressive global reach and an unrivalled portfolio of iconic brands, with tremendous growth potential. I warmly welcome Cadbury employees into the Kraft Foods family and look forward to meeting many of them in the days and weeks ahead. This combined company has a phenomenal future, and I firmly believe it will deliver outstanding returns to our shareholders," said Kraft's Chief Executive Irene Rosenfeld.

The deadline for Cadbury shareholders to accept Kraft's offer passed at 1300 GMT Tuesday. With a recommendation from Cadbury's board already secured, Kraft's success was never in doubt.

The announcement brings to a close both a five-month bid process and 186 years of independence for the maker of Dairy Milk and Trident gum.

Kraft's CEO Irene Rosenfeld is in the country to "pick up the keys" Tuesday and her first task will be to meet the U.K. government's business minister Peter Mandelson to ease his concerns over U.K. jobs.

The takeover has attracted much criticism in the U.K., not least from Mandelson himself, who warned Kraft late last year against trying to make a "quick buck" on Cadbury and said the buyout would have to respect the company's "work force and the heritage and quality."

Trade union Unite has campaigned against the deal for the past two months, warning that Kraft's high debt levels leave thousands of U.K. jobs at risk. Cadbury employs 5,600 staff in the U.K. and another 40,000 around the world.

The campaign continued in London Tuesday, as workers urged the U.K. government to ensure Kraft's pledges to Cadbury's workforce are more than just "warm words."

Kraft CEO Rosenfeld has already promised to keep the Somerdale factory near Bristol open despite Cadbury's previous management earmarking it for closure. She has also said Kraft will be a "net importer" of jobs to the U.K.

"We understand the strength of feeling for this company across the U.K.," Mandelson's Department Of Business, Innovation and Skills said, "however the decision on the Kraft bid is a matter for the Cadbury shareholders."

There will undoubtedly be redundancies however, most likely at Cadbury's new head office on the outskirts of London.

Kraft is targeting GBP675 million of synergies from the deal and combining regional offices is an obvious place to start.

Reports suggest Rosenfeld will be meeting Cadbury staff in London later this week. When she does, she may have a tough time persuading them of the benefits of Kraft's buyout.

Cadbury workers will have a dim view of their new employers if they've been listening to Cadbury's Chairman Roger Carr and Chief Executive Todd Stitzer in recent months.

Until deciding to recommend Kraft's offer on Jan. 19, Carr had repeatedly criticized Kraft's "low-growth conglomerate" model and underperforming management to all who would listen. Stitzer chipped in with criticism of his own, describing the U.S. maker of processed cheese as a "lumbering corporate monolith."

While none of this was enough to stop them recommending a bid, it may well have had an effect on Cadbury employees worldwide.

-By Michael Carolan, Dow Jones Newswires; 44-20-7842-9278; [e-mail]