Britain investigates Kraft on Cadbury deal

Before agreeing to buy Cadbury Chocolate for $17.3 billion, Kraft repeatedly said it would keep a Cadbury factory near Bristol, England, open after the purchase.

On Nov. 9, Kraft said it "believes it will be in a position to continue to operate the Somerdale facility … thereby preserving U.K. manufacturing jobs."

But Kraft now plans to close the plant at a loss of 500 jobs, The Times of London Online reported Monday.

In February, Jacob Rees-Mogg, the Conservative Party candidate for the district that includes the factory said Kraft "while not factually inaccurate," had prepared statements that "may be misleading."

This week he said, "the speed with which Kraft made the decision (to close the plant) means that either they were careless in drawing up their offer documents or they deliberately misled people."

British Business Secretary Peter Mandelson accused Kraft of failing to provide him with any warning it was going to close the plant.

The City Takeover Panel, which monitors mergers and acquisitions, is to forward its findings to Britain's Financial Services Authority, The Times said.

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