Mondelez International Inc. is exploring acquiring Hershey Co., potentially creating a monolithic sweets and snacks company with combined sales of almost $50 billion, Bloomberg is reporting.
Source Bloomberg
Image by sergiorojoes via Freepik
Mondelez International Inc. is exploring acquiring Hershey Co., potentially creating a monolithic sweets and snacks company with combined sales of almost $50 billion, Bloomberg is reporting.
Citing anonymous sources, Bloomberg reports that Chicago-based Mondelez has made preliminary overtures to Hershey Co., a company it previously tried to acquire in 2016. At that time, Hershey Co. rejected Mondelez’s $23 million bid, prompting the company to abandon its acquisition efforts.
Bloomberg speculated that slow sales due to price hikes, driven by high cocoa futures and the better-for-you trends in snacking, could lead to market consolidation. At the same time, any acquisition of Hershey faces hurdles related to Hershey’s “dual-class share structure” and possible Federal Trade Commission resistance.
