Mondelēz Reportedly Interested in Hershey AcquisitionMondelēz Reportedly Interested in Hershey Acquisition

Mondelēz International is in the early stages of possibly merging with Hershey, a report by Bloomberg noted.

If an acquisition occurs, it would create one of the largest food and beverage businesses in the world. Hershey, a major chocolate manufacturer, owns brands such as M&M, Reese's, Rolo, Brookside, Twizzlers, Kit Kat, PayDay, Twizzlers and many other candy brands.

Chicago-based Mondelēz owns the Cadbury, Toblerone, and Oreo brands among many salty snack brands.

Mondelēz moved up in rank this year to #1 on the Global Top 100 Candy Companies, according to Snack Food & Wholesale Bakery. Hershey came in at #4 and rounding out the top 5 are: Mars Inc. at #2 (was #1 in 2023), Ferrero at #3, and Nestle at #5.

Hershey hired advisors to help it respond to the recent interest, CNBC reported. Mondelēz approached Hershey shortly after the chocolate giant reported third-quarter earnings that missed analyst expectations last month, said the person familiar with the subject.

However, shares in The Hershey Co. rose as much as 19% on Monday for their biggest intraday gain in more than eight years after the Bloomberg News report. 

A takeover of the Hershey, PA-based company would top the value of the year’s biggest deal thus far — Mars Inc.’s agreement to buy Kellanova for nearly $36 billion in August.

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In 2016,  Hershey rejected a $23 billion takeover bid from Mondelēz. At the time, a statement by Hershey said it turned down the offer after determining “that it provided no basis for further discussion between Mondelēz and the company.”

And in 2002, the William Wrigley Jr. Co. made a failed attempt to acquire Hershey for $12 billion, people close to the negotiation said at the time.

One thing could stand in the way of an acquisition of the beloved chocolate brand: The Hershey Trust, which was established by Milton Hershey and his wife Catherine in 1905, owns 28% of the company’s common stock, but it has 80.5% voting control.

Needless to say, there are obstacles to maneuver before this could move further.