Hershey Shares Soar on Mondelez Acquisition Talks
Deal News | Dec 10, 2024 | EIN
Hershey, a leading American chocolate maker, has witnessed a significant surge in its stock value, increasing by over 10%, following reports of potential acquisition talks with Mondelez International, the parent company of Cadbury. Anonymous sources reported to Bloomberg that Mondelez has initiated early discussions for a potential merger. If successful, this merger could result in a substantial snack food conglomerate with combined annual sales nearing $50 billion. Currently, Mondelez holds a market cap of approximately $84 billion, while Hershey is valued at $35 billion. This is not the first foray by Mondelez into acquiring Hershey, as the latter rebuffed a $23 billion takeover attempt in 2016. Essential to any prospective merger is the consent of the Hershey Trust Company, a charitable trust possessing about 80% of Hershey's voting rights. The merger could amalgamate well-known brands such as Hershey's Kisses and Cadbury chocolates under one roof.
Sectors
- Food and Beverage
- Consumer Goods
Geography
- United States – Hershey is based in the United States and the company is a significant player in the American chocolate market.
- United Kingdom – Cadbury, one of the popular brands under Mondelez International, is originally a UK-based company.
Industry
- Food and Beverage – This industry is relevant as it encompasses the production, distribution, and marketing of edible products, including chocolate and snack foods, as seen in the businesses of Hershey and Mondelez International.
- Consumer Goods – The Consumer Goods sector is pertinent given the focus on widely recognized brand products like those offered by Hershey and Mondelez.
Financials
- $35 billion – Current valuation of Hershey.
- $84 billion – Current market capitalization of Mondelez International.
- $23 billion – Previous takeover bid by Mondelez for Hershey in 2016.
- $50 billion – Projected annual sales of the merged Hershey-Mondelez entity.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Hershey | Target Company | Company | An iconic American chocolate manufacturer known for products such as Hershey's Kisses and Reese's Peanut Butter Cups. |
| Mondelez International | Bidding Company | Company | A global snack company, parent to Cadbury, pursuing a potential merger with Hershey. |
| Hershey Trust Company | Other | Charity | A charitable trust with significant voting control over Hershey, requisite for merger approval. |