The global food industry is once again experiencing a wave of mergers and acquisitions.
On December 9th, Monday Eastern Time, Bloomberg cited sources familiar with the matter stating that Mondelez International, the manufacturer of Oreo cookies and a multinational food company in the United States, is considering acquiring the iconic American chocolate manufacturer Hershey. If this deal is successfully completed, it will create a food giant with annual sales approaching $50 billion.
Sources revealed that Mondelez International has expressed preliminary acquisition intentions to Hershey, but the merger negotiations are still in the early stages, and there is uncertainty about whether the deal can be reached. As a result of this news, during Monday's trading, Hershey's stock price surged over 19.8%, marking the largest single-day increase in eight years, while Mondelez International's stock price fell over 4%.
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This is not the first time Mondelez International has attempted to acquire Hershey. As early as 2016, Mondelez International tried to acquire Hershey for $23 billion, but the offer was rejected, and the attempt was unsuccessful. Now, seven years later, Mondelez International is once again extending an olive branch to Hershey, highlighting its strong desire to expand market share. Bloomberg data shows that including debt, Hershey's total valuation is approximately $46 billion. If this merger deal is successful, it will surpass the largest merger deal so far this year— in August, Mars acquired Kellanova for nearly $36 billion.
However, the success or failure of this deal faces a key factor: the Hershey Trust holds almost all of Hershey's Class B shares, accounting for about 80% of the company's voting rights. Any acquisition plan must gain the support of the Hershey Trust to move forward. Notably, in recent years, the Hershey Trust has been slowly selling its shares in Hershey to diversify its portfolio, which may bring a glimmer of hope for Mondelez International's acquisition plan.
<h2>Intensifying Integration Trend in the Food Industry</h2>
Analysts point out that this potential merger reflects the trend of integration in the global food industry. In recent years, the global packaged food industry has faced pressures from declining sales, slowing growth, and weakening consumer demand. Against this backdrop, many food giants are stimulating sales through innovation and exploring new markets, with mergers and acquisitions becoming an important strategic choice.
As consumer resistance to rising prices increases and health awareness grows, the traditional snack industry is also facing transformation pressures. These factors are driving the integration of the food industry, prompting large companies to expand market share and optimize product portfolios through mergers and acquisitions to enhance competitiveness. Mondelez International's acquisition plan is undoubtedly part of its strategy to further expand its market influence.
As a globally renowned snack and candy company headquartered in Chicago, Mondelez International owns several famous brands, including Oreo cookies and Cadbury chocolate. If the acquisition of Hershey is successful, Mondelez International will further consolidate its leadership position in the chocolate and candy market while also gaining Hershey's strong distribution network in the North American market
For Hershey, being acquired may mean gaining more resources to tackle market challenges.
<h2>Hershey: A Century-Old Company Seeking Breakthroughs</h2>
Founded in the late 19th century, Hershey is a renowned American chocolate and candy manufacturer, owning well-known brands such as Hershey's Kisses, Reese's Peanut Butter Cups, and PayDay. In November of last year, the company further enriched its product portfolio by acquiring the candy brand Sour Strips.
However, Hershey has recently faced significant challenges. Cocoa prices have reached historic highs, and although they have retreated somewhat, they remain well above previous levels, while sugar prices also remain elevated. Additionally, in the face of inflationary pressures, consumers' budgets are tightening, further impacting the company's profitability. These factors have led Hershey to lower its sales growth and profit expectations, and the company's CEO, Michele Buck, is seeking new solutions to break through the difficulties

MDLZ

Oreo cookie manufacturer Mondelez is considering acquiring American chocolate giant Hershey. Hershey's total valuation is approximately $46 billion, and if this merger is successful, it will become the largest merger deal of the year, creating a food giant with annual sales close to $50 billion. Although Mondelez has expressed initial acquisition intentions to Hershey, negotiations are still in the early stages, and the outcome remains uncertain. This news caused Hershey's stock price to rise nearly 20% at one point, while Mondelez's stock price fell

- Mondelez International is considering acquiring Hershey, which could create a food giant with nearly $50 billion in annual sales.  
- This potential acquisition reflects a trend of consolidation in the global food industry, driven by declining sales and increasing consumer demand for healthier options.  
- Hershey faces challenges such as high cocoa and sugar prices, prompting the company to seek new strategies for growth amid tightening consumer budgets.

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Global food giants are once again stirring up a wave of mergers and acquisitions, with reports indicating that Mondelez plans to acquire Hershey