According to the Wall Street Journal, Mondelez International Inc. made a bid to buy chocolate giant Hershey Co. in what would be a blockbuster deal uniting two of the world’s best-known candy makers.
Mondelez, which makes Oreo cookies and Cadbury chocolate bars, recently sent a letter to Hershey proposing deal, according to people familiar with the matter. Terms are unknown, but Hershey had a $21 billion market value Thursday morning, and according to reports, Mondelez offered $107 per share. Mondelez had a $69 billion market value.
Any sort of deal would be contingent on the approval of the Hershey Trust, which holds 8.4% of common stock and 81% of its voting power. The Trust has been opposed to selling the company in the past, though Mondelez is prepared to go to lengths to win it over.
Mondelez is pledging to protect jobs following a merger of the companies, locate its global chocolate headquarters in Hershey, Pa., and rename the company Hershey, according to one of the people.
Valerie Moens, Associate Director, Corporate External Communications for Mondelez issued a terse response to inquiries, “As a matter of practice, we do not comment on market rumors or speculation.”
Governor Wolf’s Press Secretary issued a statement: “Governor Wolf understands how important Hershey is to the state’s economy and to the Hershey community. He looks forward to working with officials from Hershey to ensure their continued commitment to growing the economy in Pennsylvania.”
