Mondelez Explores Hershey Takeover; Hershey Shares Surge 19%, Trading Halted

Dec 9, 2024, 03:19 PM

Mondelez International Inc. is reportedly exploring a takeover of U.S. chocolate maker The Hershey Company. According to reports, Mondelez has made a preliminary approach to Hershey, and any potential deal would require the backing of the Hershey Trust. Shares of Hershey surged up to 19% on the news, leading to a halt in trading due to volatility. This marks the largest intraday gain for Hershey in over eight years. If successful, the acquisition would combine iconic brands such as Cadbury, KitKat, Oreo, Ritz, and Reese's under one company, creating a food giant with combined sales of almost $50 billion. Mondelez previously attempted to purchase Hershey in 2016 for $23 billion; Hershey's market capitalization now sits at approximately $40 billion.