Business
Cadbury's relaunches popular chocolate bar - 20 years after it vanished from shelves | Money
June 14, 2024
December 10, 2024
By Evans Momodu
1 minute read
Cadbury’s owner, Mondelez International, is reportedly considering a potential takeover of rival chocolate maker Hershey. The deal, if realised, would create one of the largest confectionery companies globally.
Mondelez has made an initial approach about the acquisition, although discussions are still in their early stages.
Following the news, Hershey's shares surged by 19%, reaching $208.03, while Mondelez's stock fell by about 4%. Hershey currently has a market capitalisation of approximately $35 billion.
Both chocolate producers and packaged food companies have been grappling with rising input costs, particularly from higher cocoa prices. This has led to increased product prices, which in turn have dampened consumer demand.
Recently, Hershey revised its annual revenue and profit forecasts downward after quarterly revenues fell to nearly $3 billion due to weakened demand. In contrast, Mondelez saw a near 2% rise in quarterly sales, reaching $9.2 billion.
Neither Mondelez nor Hershey has commented publicly on the potential deal.
Source: Sky news
Image: Daily Mail
