London , England ( CNN ) -- The board of British chocolate maker Cadbury accepted a buyout offer from American food giant Kraft Tuesday , a deal that would end the nearly 200-year-old independence of the beloved British brand . The board has agreed to recommend the offer to Cadbury shareholders , who have until February 2 to decide -- but they are expected to approve it . Kraft 's offer Tuesday is its biggest one yet for the maker of Creme Eggs and Dairy Milk chocolate bars . It values Cadbury at £13.3 billion ( $ 21.8 billion ) , or £8.40 ( $ 13.77 ) per share . In addition , Cadbury shareholders will be entitled to receive 10 pence ( 16 cents ) per Cadbury share . `` We believe the offer represents good value for Cadbury shareholders and are pleased with the commitment that Kraft Foods has made to our heritage , values , and people throughout the world , '' Cadbury Chairman Roger Carr said in a statement . He said Cadbury would work with Kraft to ensure the growth of the business for customers and employees . `` We have great respect for Cadbury 's brands , heritage , and people , '' said Kraft Chairwoman and Chief Executive Irene Rosenfeld . `` We believe they will thrive as part of Kraft Foods . '' Will takeover affect Cadbury 's taste ? Cadbury had previously rejected two hostile takeover bids by Kraft because Carr said they did not value the company high enough . Illinois-based Kraft earlier this month sold its North American frozen pizza business to Nestle to finance a fresh bid for Cadbury . The January 5 sale helped Kraft boost the cash element of its offer , which would give Cadbury shareholders cash in addition to Kraft shares . There had been rumors that Swiss firm Nestle , which has a chocolate and confectionery unit , would make its own offer for Cadbury . But Nestle squelched those rumors when it bought Kraft 's frozen pizza business in the United States and Canada for $ 3.7 billion . U.S. chocolate maker Hershey also had reportedly been considering a $ 17.9 billion bid for Cadbury . Cadbury is a beloved brand in Britain , producing chocolate products that have become a cultural fixture . Its Dairy Milk and Bournville brands have been around for more than 100 years , and its Milk Tray and Roses samplers -- which are still sold today -- were some of the first to be marketed as an everyday purchase . John Cadbury established his shop in Birmingham , England , in 1824 , selling drinking chocolate alongside coffee and tea . Cadbury , a Quaker , was trying to give people an alternative to alcohol , which he thought destroyed lives , according to the company . Cadbury : From grocery store to global giant . The company now employs around 45,000 people in 60 countries , including around 5,700 staff at eight manufacturing sites in the UK and Ireland , . Kraft 's roots go back to 1903 , when J.L . Kraft began selling cheese from his horse-drawn wagon in Chicago , Illinois . Today the company owns products from Oreo Cookies and Jell-O gelatin to Philadelphia Cream Cheese and Miracle Whip salad dressing , though it may be most famous for its Macaroni & Cheese instant dinner and Velveeta processed cheese products . Kraft 's takeover of Cadbury has also been criticized by British trade unions who urged the UK government and the EU to block the bid . Unite , the UK 's largest union said a merger will destabilize the company and hit future returns to shareholders . Outside Cadbury 's plant in the Birmingham suburb of Bourneville on Tuesday some workers expressed their fears about possible job losses . One man told the Press Association : `` There are a lot of worried people inside that building . '' The employee , who asked not to be named , added : `` Nobody really knows what is going on or what this might mean in terms of job losses , but inside that factory there are a lot of people who are very , very worried about the future -- the future of the company and their own future , their jobs and their families . `` It is not a good atmosphere here today . ''
British chocolate maker Cadbury accepts buyout offer from U.S. food giant Kraft . Kraft offer for Cadbury is 840 pence per share , valuing Cadbury at £21.8 billion . Agreed cash-and-stock offer ends five months of hostile relations . Combined Kraft/Cadbury will be one of world 's biggest confectionery companies .