[Update] Parent Company Of Nabisco And Oreo Wants To Gobble Up Hershey Chocolate

Image courtesy of Tom Simpson

Snack food giant and grocery store staple Mondelez International apparently has decided it needs more chocolate for the s’mores you can make with its Honey Maid graham crackers, and is making a takeover bid for Hershey Foods.

The Wall Street Journal reports that Mondelez is making every attempt to acquire Hershey.

The WSJ, citing the ever-popular “people familiar with the matter,” says that Mondelez has contacted Hershey about the sale. The Hershey Trust, which holds 8.4% of the stock and 81% of the voting power, has historically resisted any sale offers.

Mondelez, however, is reportedly “prepared to go to lengths” to win over America’s most famous chocolate brand, including pledges to protect jobs, relocate to Hershey, PA, and rename the whole company Hershey, according to a source.

The Mondelez family of brands currently includes a whole bunch of snacks, crackers, and candies that you know, including Oreo, Cadbury, Chips Ahoy, the entire Nabisco line, Philadelphia (cream cheese), Ritz, and Trident and Stride gum, among many others.

The Hershey Company, meanwhile, makes more than just Hershey’s-branded chocolate. They also sell a variety of other candy brands, including Twizzlers, Mounds and Almond Joy, Reese’s peanut butter products, and York peppermint patties.

Hershey also already owns the rights to Cadbury candies in the U.S., which are different (and widely considered less good) than their British, Mondelez-owned counterparts.

Update: Later this afternoon, the Hershey Trust rejected Mondelez’s $23 billion offer, Reuters reports. The board of directors unanimously rejected the proposal and said “it provided no basis for further discussion.”

It remains to be seen if Mondelez meant it about going “to lengths” to make the deal happen, and if it will try again.

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