Bloomberg: Mondelez Exploring Takeover of US Chocolate Maker Hershey

Mondelez International Inc., the snacks and sweets company, is exploring an acquisition of iconic US chocolate maker Hershey Co., reports Bloomberg, in a potential deal that would create a food giant with combined sales of almost $50 billion, according to people familiar with the matter.

Chicago-based Mondelez has made a preliminary approach about a possible combination, said the people, who asked not to be identified because discussions are private, according to Bloomberg.

Hershey Co. has a value of more than USD44bn including debt, Bloomberg-compiled data show. That means a takeover of the Hershey, Pennsylvania-based company would top the value of the year’s biggest deal — snack maker Mars Inc.’s agreement to buy Kellanova for nearly USD36bn including debt in August.

Deliberations are in the early stages and there’s no certainty that discussions will lead to a deal, the people said. A representative for Mondelez declined to comment, Bloomberg reports. A representative for Hershey Co. said the company doesn’t comment on market rumors.