New Delhi: Mondelez International, the company behind iconic brands like Oreo and Cadbury, is reportedly exploring a potential acquisition of Hershey Co., the renowned US chocolate maker. If successful, the deal would create a confectionery and snack powerhouse with nearly $50 billion in combined annual sales.
According to a Bloomberg report, Mondelez has made a preliminary proposal to Hershey, and the chocolate maker has engaged advisors to help navigate the potential merger. This development comes shortly after Hershey reported disappointing third-quarter earnings last month, potentially making the company more receptive to a takeover offer.
This isn’t the first time Mondelez has expressed interest in acquiring Hershey. In 2016, Mondelez made a $23 billion bid for the maker of Kisses and Reese’s Peanut Butter Cups, but the offer was rejected.
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However, the current discussions are still in their early stages, and there’s no certainty that a deal will be reached. Both companies have declined to comment on the matter.
A potential merger would bring together some of the most recognizable names in the snack food industry, including Oreo, Cadbury, Milka, Toblerone, Hershey’s chocolate bars, Reese’s, and Kit Kat. It would also significantly expand Mondelez’s presence in the US chocolate market, where Hershey holds a dominant position.
The news of a potential Mondelez-Hershey tie-up has sent ripples through the food industry, with analysts and investors closely watching the developments. If the deal materializes, it could reshape the global confectionery landscape.