Is the next confectionery mega-deal just around the corner?

 

Mondelez International has made a preliminary approach about a possible combination, Bloomberg reported, adding that deliberations were in the early stages and there was no certainty that discussions would lead to a deal. Both Mondelez and Hershey declined to comment.

In 2016, Mondelez International abandoned the pursuit of Reese's Peanut Butter Cups owner after the latter rejected a USD 23 bn takeover bid. Chocolate companies as well as packaged food firms have been under pressure from rising input costs, especially cocoa prices, forcing firms to raise prices, which have in turn led to weakening demand.

Earlier this year, family-owned company Mars said it would buy Kellanova in a nearly USD 36 bn deal, bringing together brands from M&M's and Snickers to Pringles, Cheez-It and Pop-Tarts in what was at the time the year's biggest deal to date.