There is nothing the Government can do to stop US food giant Kraft from sacking workers at Cadbury, Lord Mandelson has admitted.

The proposed £11.9 billion takeover spells an end to a proud history at the iconic Birmingham-based British confectioner, raising fears of job losses – and the prospect of the entire site being shut down and production moved elsewhere.

Asked if he had the power to prevent job cuts at the factory, the Business Secretary replied: “I can’t stop a private company making changes in their operation – of course I can’t.

“But that would be the case whether Cadbury had been taken over by Kraft or whether it was remaining as it is,” he said.

“Look at the way Cadbury has morphed from a local Bournville producer into a major multi-national company that is producing chocolate, sweets and other goods in something like 50 countries in the world.

“I am not saying that we don’t change. What I am saying is though that you don’t then create a debt mountain that you then have to service or work down by cutting back on the very productive capability and human resources that has made the company good in the first place.”

The minister reasserted his commitment to ensure Kraft fulfilled the pledges it had made to Cadbury and its workforce.

“I have said I have been given assurances, now I want to see the colour of their money. I want to see the small print, and I want to know what they mean when they say they are going to show respect for the legacy, production, the workforce of Cadbury.

“That is why I have asked them in to come and see me and talk to me about it.”

Lord Mandelson, who has voiced opposition to the Kraft takeover, said he sympathised with Kraft’s leading shareholder Warren Buffet, who yesterday attacked the bid as a bad deal.

Referring to the takeover, Lord Mandelson added: “It is not my job to stop Kraft doing this. It is not by job to order the board and shareholders of Cadbury not to accept a deal.”

On Tuesday, the peer said he would do everything in his power to keep Kraft to its undertakings.

“I am certainly not going to walk away from this – even though, obviously I entirely accept that this is a decision for the company’s board. I am not pretending I can block something or stop something where I don’t have the powers to do so.

“But equally, as a minister, I do understand and reflect the fact that in our country, Cadbury is regarded as a great company, an iconic brand, producing some of the nation’s favorite chocolate bars, with a very strong community presence and sense of loyalty – so of course I understand that emotions are going to be riding high, but the decision is for the shareholders of Cadbury.”

But he admitted foreign takeovers can harm the businesses they buy, adding there was a danger of “a lot of gravitation to the foreign-based headquarters rather than favoring on entirely dispassionate grounds those points of production that are overseas from headquarters”.

Asked if he believed the company’s name should remain as it is, Lord Mandelson replied that it would be “commercially crazy” for Kraft to lose the Cadbury brand.

“I can’t believe that they would be so stupid to replace Cadbury with Kraft when it means so much to consumers in so many continents around the world.”

After almost an hour answering questions on the subject, Lord Mandelson added: “I would like my Creme Egg to continue to be produced in this country. It’s a perfectly-formed Creme Egg. It’s perfect in taste.”