Mondelez Eyes Sweet Merger with Hershey

Mondelez International is reportedly exploring an acquisition of Hershey, potentially forming a mega confectionery company. The move comes amid financial pressures from rising cocoa costs and decreased consumer demand. Discussions are still preliminary, and gaining approval from Hershey's Trust is crucial for any potential deal.

In a potential mega-deal within the confectionery industry, Mondelez International is considering acquiring Hershey, according to Bloomberg News. If successful, this merger would create one of the world's largest candy makers, though discussions are still in early stages with no guaranteed outcome.

Market reactions were mixed, with Hershey's shares jumping 17%, while Mondelez saw a 4% dip. Mondelez has previously attempted to acquire Hershey in 2016, offering $23 billion, which was rejected. Any current deal would require approval from the Hershey Trust Company, given its voting control over The Hershey Company.

This exploration into mergers comes as the industry faces rising costs, particularly in cocoa, impacting both consumer demand and pricing strategies. Other major deals are happening as well, like Mars' acquisition of Kellanova earlier this year for $36 billion, indicating a trend of consolidation in the industry.

(With inputs from agencies.)