Mondelez looking into possibly buying Hershey
Reports citing industry insiders suggest that Mondelez International is looking once more to acquire chocolate giant Hershey, a move if it comes to fruition, would create the largest confectionary maker in the world.
Both Yahoo Finance and Reutersare reporting on earlier reporting done by Bloomberg News late yesterday, that Mondelez is exploring whether to take on the chocolate giant. Upon the announcement of the news, shares of Hershey, whose market capitalization is worth over US$35 billion, jumped 19% in early morning trading. Mondelez is valued at around US$84 billion.
Mondelez had earlier tried to acquire Hershey in 2016, when it then made a US$23 billion offer to Hershey. The half-cash, half-stock deal was rejected by Hershey's board.
Both companies are remaining silent on the news. InvestingPro has given Hershey a GOOD financial health report.
Investing.com is reporting that Stifel, a full-service brokerage and investment banking firm, says that the possible merger would bring several benefits to Mondelez, including a stronger brand presence internationally as well as bringing such recognized chocolate brands as Reese's into its portfolio of confectionary products.
Mondelez International is based in Chicago and operates in some 160 countries and has such chocolate brands as Milka, Toblerone and Cadbury. Mondelez Canada holds the rights to Christie Brown and Company, with such Canadian favourites as Mr. Christie and Dad's Cookies.
