LONDON (Reuters) - Mondelez International (O:MDLZ) is to buy the rights to sell Cadbury-branded biscuits from Britain's Burton's Biscuit Co in a bid to sell more and combine chocolate and biscuits in new products.
Mondelez, with its global distribution network, would be able to expand the reach of Cadbury Fingers biscuits and accelerate new products.
"The transaction will...enable us to explore delicious new products by using the best of our chocolate and biscuit innovation platforms," Hubert Weber, head of Mondelez Europe, said.
Under the deal, U.S.-based Mondelez will have the right to make, market and sell Cadbury biscuits around the world, though the biscuits will continue to be manufactured in Burton's factories under a co-manufacturing agreement.
Financial terms were not disclosed, but a July news report said Mondelez had offered Burton's about 200 million pounds ($259.4 million).
Burton's, which also makes Jammy Dodgers and Wagon Wheels, has been owned by Ontario Teachers’ Pension Plan of Canada since November 2013.
Mondelez, which bought Cadbury chocolate in 2010 for about $19 billion, also recently offered to buy U.S. rival Hershey (N:HSY), but was rebuffed.
($1 = 0.7711 pounds)