Updated: Hershey Trust rejects Mondelez's offer, says Bloomberg

UPDATE: On December 11, Bloomberg reported that the Hershey Trust, the primary owner of chocolate maker Hershey Co., rejected Mondelez International Inc.'s takeover offer. Bloomberg reports that the offer was deemed too low by the trust. 

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.

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