Cadbury-owner Mondelez exploring Hershey acquisition, Bloomberg News reports

Published On Dec 9, 2024, 12:59 PM

Mondelez International is reportedly considering acquiring Hershey, which would significantly expand Mondelez’s presence in the U.S. chocolate market, currently dominated by Hershey with a 36% market share. Hershey’s stock surged by 19% following the news, while Mondelez's shares dropped about 4%. This acquisition could create one of the largest confectioners globally. Previous attempts by Mondelez to acquire Hershey have failed, and any deal would require approval from the Hershey Trust Company, which controls the company.

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Stock Forecasts

HSYView HSY chart on TradingView

Positive

The stock of Hershey is likely to continue to experience upward momentum as the acquisition news may draw investor interest in anticipation of premium offers. Mondelez may face short-term stock pressure due to its recent divestiture reports, but the long-term outlook could improve if the acquisition is successful.

MDLZView MDLZ chart on TradingView

Negative

Mondelez’s share price might witness a decline or stagnation as investors react cautiously to the acquisition news and possible dilution effects from funding the deal. However, if they manage to secure Hershey successfully, the long-term benefits could positively impact their valuation.

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