Cadbury goes forward with Orangina

On August 23, the British food and beverage group Cadbury Schweppes removed an obstacle to its takeover of Orangina-Pampryl after the works council of the French soft drinks maker agreed to the deal, the Financial Times reports. In June, Cadbury Schweppes reached a preliminary agreement to buy Orangina from Pernod Ricard for about Euro700m. However, it maintained a diplomatic silence about its plans for integrating Orangina ahead of consultations with the French company's workforce. Following a meeting of the works council, Jacques Pfister, Orangina chief executive, said Cadbury had guaranteed there would be no job cuts for about two years. Orangina employs some 900 people. Mr Pfister said: "This agreement is a very positive step. It will give us the time to get acquainted with the new owner and build a business plan together."​ Cadbury is not expected to raise similar antitrust concerns, even though it still has to approach regulators in Europe and the US. Mr Pfister said the Cadbury deal would enhance competition by producing a stronger rival to Coke, the market leader in France. Cadbury will initially take on the Orangina brand in continental Europe, North America and Australia, while Pernod will maintain control of the brand in Britain, Africa and Eastern Europe. The agreement to purchase Orangina was one of several recent deals that added muscle to its soft drinks operations outside the US. Cadbury welcomed the workers' approval: "It is a significant step forward in the progress of the transaction. We are pleased that the consultation process is finished."​ Cadbury claimed it would set up a management steering committee to consider the best structure for Orangina going forward. The committee will liaise with the works council.