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Cadbury has confirmed plans to invest £75m at its confectionery plant in Birmingham by 2016, but 205 jobs will be lost.

Cadbury is to invest £75m in the expansion of its Bournville confectionery plant in Birmingham over the next three years.

Cadbury is to create 50 new jobs at its research centre in Bournville and a further 50 at its customer service and logistics department.

Cadbury, the Birmingham-based confectionery manufacturer with 45,000 staff worldwide, has agreed terms for a £11.6bn takeover by Kraft of the US.

Cadbury has agreed to sell its Schweppes Beverages subsidiary in Australia to Asahi of Japan for £550m.