Overview

It was, perhaps, always inevitable that the takeover of an iconic British brand by an American company would send a few ripples of concern through the country, particularly among trade unions - who (with good reason) worried about the impact on their members' jobs. But coming in a febrile pre-election period, Kraft's acquisition of chocolate maker Cadbury has in fact fuelled a national debate about the UK's ”open door" policy and its widely respected takeover rules.

The incumbent Labour government has made a manifesto commitment to make it harder for companies to be taken over, and the Liberal Democrats - who may well hold the balance of power this time next week - are also keen to see changes.

Although it is clearly not the main issue for voters in this Thursday's general election, the outcome - which is still far from certain - could have an impact on the future of Britain's takeover code. But, perhaps oddly, if any changes are made they may serve to slightly shift the balance in favour of financial buyers, if they make any practical difference at all.

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