Mondelez Eyes Strategic Hershey Merger

Cadbury's parent company, Mondelez International, is considering an acquisition of the chocolate maker Hershey. Bloomberg reports a preliminary approach has been made, with Mondelez valued at $84 billion and Hershey at $35 billion. Hershey shares rose 17% while Mondelez shares fell 4%.

In a move that could reshape the chocolate industry, Mondelez International, the parent company of Cadbury, is reportedly exploring the acquisition of Hershey. According to Bloomberg News, sources indicate that Mondelez has initiated a preliminary approach for this potential merger.

As of the last week's market close, Mondelez commands a market capitalization of approximately $84 billion, while Hershey stands at $35 billion. The financial implications of this merger are significant given the current valuation of both companies.

Following the news, Hershey's stock surged by 17%, whereas Mondelez saw a decline of about 4% in share prices. Neither company has issued an official statement, as spokespeople from both Mondelez and Hershey have not responded to queries regarding the potential acquisition.

(With inputs from agencies.)