US competition authorities have approved a bid by Kraft Foods to acquire British confectioner Cadbury, the US food giant said today in a note to the London Stock Exchange.
Cadbury management yesterday rejected the takeover offer, describing the formal bid as 'inadequate' and ramping up its defences.
The European Union is to rule on the takeover bid by January 6.
The US group launched its hostile move last month and has been repeatedly snubbed by Cadbury management.
Earlier this month, Kraft appealed directly to shareholders with details of its cash and shares bid, now worth £9.9 billion sterling (€11 billion), down from an initial £10.2 billion. Shareholders have until January 5 to accept the Kraft offer.
Kraft is the world's second biggest snacks group after Nestle, while Cadbury is the second largest confectionery company behind Mars.
A tie-up between Kraft and Cadbury would merge leading Kraft brands Oreo biscuits and Maxwell House coffee with Cadbury's Dairy Milk chocolate and Trident chewing gum.
