Mondelēz Exploring Hershey Acquisition

By: Trademagazin editor Date: 2024. 12. 11. 09:37

Mondelēz International is exploring the acquisition of chocolate maker Hershey, Bloomberg News reported, citing people familiar with the matter, in what would create one of the world’s largest confectioners.

Mondelēz, which is valued at around $84 billion (€79.6 billion), has made a preliminary approach about a possible combination, Bloomberg reported, adding that deliberations were in the early stages and there was no certainty that discussions would lead to a deal.

Both Mondelēz and Hershey declined to comment.

The Hershey Trust Company, a charitable trust that has as its sole beneficiary the Milton Hershey School, maintains voting control over The Hershey Company and its approval is key in any deal.

A potential deal with Hershey will give Chicago-based Mondelēz a stronger presence in the chocolate market in the United States, the world’s biggest consumer of the cocoa-based confection. Mondelēz’ chocolate brands, Cadbury and Milka, are top sellers in Europe.

Hershey had the biggest chunk of the US chocolate market in 2022, with nearly 36% share, according to a report from data firm Statista, followed by Mars, which had a near 30% share of the US market.

ESM