Mondelez exploring Hershey takeover - report

(Sharecast News) - Snacks and sweets company Mondelez International is reportedly exploring an acquisition of US chocolate maker Hershey Co, in a potential deal that would create a food giant with combined sales of almost $5bn. Bloomberg cited people familiar with the matter as saying that Chicago-based Mondelez - which owns Oreo and Cadbury, among others - has made a preliminary approach about a possible combination.

Sources told Bloomberg that deliberations were in the early stages and there was no certainty that talks would lead to a deal.

Danni Hewson, head of financial analysis at AJ Bell, said: "What could a mash up of Cadbury and Hershey's chocolate taste like? Purists will be hoping that taste sensation won't make it onto shelves, but the two brands could end up in the same stable if reports that Mondelez is exploring the possibility of taking over the kisses maker result in firm action.

"At the moment it seems to be preliminary exploration but the cost cutting opportunities are pretty evident in a tie up which would create the world's largest confectionary maker.

"It's not the first time Mondelez has set its cap at Hershey's. Back in 2016 the latter rejected a $23 billion bid.

"Shares in Hershey's jumped by more than 14% on the news whilst Mondelez sank back a modest 2% in early trading."