Mondelez International eyes US chocolate maker Hershey in potential $50 billion deal

The move would create a food powerhouse with a combined revenue of nearly $50 billion, consolidating Mondelez’s diverse portfolio with Hershey’s iconic chocolate and candy brands.

By  Storyboard18Dec 10, 2024 8:53 AM
Mondelez International eyes US chocolate maker Hershey in potential $50 billion deal
Mondelez, known for products like Oreo cookies, Ritz crackers, and Toblerone chocolates, is keen on expanding its footprint in the chocolate, biscuits, and baked snacks markets.

Mondelez International Inc., the global snack and sweet treats company, is in the early stages of exploring a potential acquisition of Hershey Co., according to sources familiar with the matter in a news report.

The move would create a food powerhouse with a combined revenue of nearly $50 billion, consolidating Mondelez's diverse portfolio with Hershey's iconic chocolate and candy brands.

The Chicago-based company, valued at around $84 billion, has made an initial approach regarding a merger with Hershey, which is currently valued at approximately $35 billion.

This marks the second time Mondelez has expressed interest in acquiring Hershey; in 2016, it walked away from a $23 billion bid after Hershey rejected the offer.

At present, Hershey Co. is trading with a market value of about $40 billion, including debt, positioning a potential acquisition as one of the biggest deals of the year. For context, Mars Inc.’s acquisition of snack maker Kellanova for $36 billion earlier this year currently holds the title for the largest food sector deal of 2024.

While discussions are still in the early stages, and no final deal is guaranteed, the ongoing deliberations reflect broader trends within the food industry.

Mondelez, known for products like Oreo cookies, Ritz crackers, and Toblerone chocolates, is keen on expanding its footprint in the chocolate, biscuits, and baked snacks markets.

Analysts suggest that Mondelez is open to acquisitions, given its capacity to handle debt. In contrast, Hershey, while enduring higher cocoa and sugar costs, has faced challenges in the current economic climate, leading to recent revisions in its financial outlook.

First Published on Dec 10, 2024 8:53 AM

More from Storyboard18

Brand Marketing

NCLT rejects insolvency plea against Zomato, providing relief amid legal dispute

NCLT rejects insolvency plea against Zomato, providing relief amid legal dispute

Brand Marketing

Unilever acquires personal care brand Wild

Unilever acquires personal care brand Wild

Brand Marketing

Schbang MMaximise co-founder Masoom Minawala steps down

Schbang MMaximise co-founder Masoom Minawala steps down

Brand Marketing

Dabur sees flat Revenue in Q4 amid inflation and weak consumer demand; shares drop 6%

Dabur sees flat Revenue in Q4 amid inflation and weak consumer demand; shares drop 6%

Brand Marketing

Hero MotoCorp records 5.9 million sales in FY’25; expands EV and global footprint

Hero MotoCorp records 5.9 million sales in FY’25; expands EV and global footprint

How it Works

ChatGPT data stored outside India, copyright act does not apply in ANI case: OpenAI to Delhi HC

ChatGPT data stored outside India, copyright act does not apply in ANI case: OpenAI to Delhi HC

Brand Marketing

Meta and UFC strike multi-year deal to enhance fan experience

Meta and UFC strike multi-year deal to enhance fan experience

How it Works

Creative control or creative caution? What’s really driving content choices on Indian OTTs

Creative control or creative caution? What’s really driving content choices on Indian OTTs