Mondelez International, the maker of Oreo cookies, is considering acquiring Hershey, a major U.S. chocolate company. Hershey's total valuation is around $46 billion. If successful, this merger would be the largest deal of the year, forming a food giant with nearly $50 billion in annual sales. Despite Mondelez's initial interest, negotiations are in early stages and uncertain. The news caused Hershey's stock to rise nearly 20%, while Mondelez's stock fell.
This isn't Mondelez's first attempt to acquire Hershey; a 2016 bid was rejected. A key hurdle in the deal is Hershey Trust's control over 80% of Hershey's voting rights. The potential merger reflects a trend of consolidation in the food industry as companies face challenges like declining sales and increased health awareness among consumers.
