Ryan Collerd/Bloomberg via Getty Images
What you need to know
- Bloomberg reports that the food giant Mondelez has been exploring a possible acquisition of Hershey’s, a chocolate manufacturer.
- Hershey’s shares rose 12% in the recent trading.
- Mondelez lost ground when the Hershey story was published.
Hershey’s (HSY), shares rose Monday after news broke that Mondelez International, a snack food giant, is interested in acquiring Hershey.
Bloomberg reports that Mondelez has begun exploring the possibility of a takeover. However, this process is still in its early stages, and it is possible that a deal will not be reached. Financial details were not provided in the story about Hershey’s potential acquisition. According to Visible Alpha, Hershey has a market value of over $35 billion.
Hershey rejected a second offer in 2016 from Mondelez. Mondelez produces Cadbury chocolates, Oreos cookies and savory snacks such as Wheat Thins or Ritz Crackers.
Hershey stock rises on the back of news
Mondelez spokeswoman Tracey Noe said the company doesn't comment on "market rumors and speculation." Hershey has not responded to our request for comment.
Hershey stock was trading around 13% higher. Mondelez’s share price fell by about 2%. Hershey’s shares were about 6% lower year-to date before the news broke Monday of a possible takeover.
The stock of this chocolate manufacturer is up 6% so far in 2018. Hershey cut its forecasts for 2024 a few months ago due to high cocoa prices, and the relatively low demand of its Kisses.
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