The speculation of a merger between the well-known chocolate-maker Cadbury and US food giant Kraft, which have been making rounds occasionally over the past couple of years, have been practically put to an end by Cadbury, with its recent refusal of an offer from Kraft!

In a Monday statement, Kraft - the maker of brands like Dairylea cheese, Kenco coffee and Toblerone chocolates - revealed that it had approached the Cadbury board with an offer of 300p per share and 0.2589 Kraft shares for each share of Cadbury; an offer that Cadbury turned down.

However, Kraft said that it still intends persisting with the negotiations with Cadbury in the hope a successful deal to come through; and added that its public disclosure of Cadbury's rejection of the offer was also a step towards maintaining "a constructive dialogue" with Cadbury.

Noting that a merger between the two firms "would build on Kraft Foods' position as a global powerhouse in snacks, confectionery and quick meals with a rich portfolio of iconic brands," Irene Rosenfeld, the Chairman and CEO Kraft remarked that "this proposed combination is about growth. We are eager to build upon Cadbury's iconic brands and strong British heritage."

Cadbury, which has sold its drinks business to concentrate only on chocolates and sweets, has not only survived the blows of recession; but has also raised its profit outlook for the year!