Mondelez's Sweet Takeover Bid: A Prospective Hershey Acquisition

Mondelez International is considering acquiring Hershey, potentially creating a major confectionery giant. While Hershey shares rose, Mondelez's fell slightly. Initial discussions have begun, with no guarantee of a deal. This follows Mondelez's previous failed $23 billion bid for Hershey in 2016.

Cadbury-owner Mondelez International is once again setting its sights on acquiring Hershey, potentially establishing one of the largest confectionery giants globally, according to a Bloomberg News report citing sources close to the matter.

Following the news, Hershey's shares surged by 17%, while Mondelez experienced a slight decline of about 4%. Mondelez has made preliminary overtures for a potential merger, though talks remain in the initial phases, with no assurance of a definitive agreement.

Both Mondelez and Hershey have yet to comment on the matter. In 2016, Mondelez abandoned a takeover attempt of Hershey after an unsuccessful $23 billion bid. As of the latest figures, Mondelez is valued at approximately $84 billion, compared to Hershey's $35 billion valuation, per LSEG data.

(With inputs from agencies.)