Kraft Foods has revealed its has received a subpoena from the US share watchdog amid an investigation into a facility in India the US food group acquired after buying Cadbury.
The Oreos maker said the US Securities and Exchange Commission had served the company with a subpoena that “primarily relates to a Cadbury facility in India that we acquired in the Cadbury acquisition”.
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Kraft said the writ was issued “in connection with an investigation under the Foreign Corrupt Practices Act” and “primarily requests information regarding dealings with Indian governmental agencies and officials to obtain approvals related to the operation of that facility”.
In a filing with the SEC, the company added: “We are cooperating with the US government in its investigation of these matters.”
In its filing, Kraft explained that, in the wake of its acquisition of Cadbury, it had started a review of the Dairy Milk maker’s operations “in light of US and international standards as well as Kraft Foods’ policies and practices”.
The company said: “We initially focused on such high-priority areas as food safety, the Foreign Corrupt Practices Act and antitrust. Based upon Cadbury’s pre-acquisition policies and compliance programs and our post-acquisition reviews, our preliminary findings indicated that Cadbury’s overall state of compliance was sound.
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By GlobalData“Nonetheless, through our reviews, we determined that in certain jurisdictions, including India, there appeared to be facts and circumstances warranting further investigation. We have undertaken these investigations, which are ongoing.”
