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Preliminary discussions have taken place, but there's no certainty that a deal will be finalized.
This news led to a significant surge in Hershey's stock price, which rose approximately 13% to $199.52 on Monday, Benzinga reported.
In contrast, Mondelez's shares experienced a decline of about 4%, Reuters explained.
It's important to note that this isn't the first time Mondelez has pursued Hershey. In 2016, Hershey rejected a $23 billion takeover bid from Mondelez, as written by Yahoo Finance.
A significant factor in any potential acquisition is the Hershey Trust Company, which holds controlling voting power and would need to approve any transaction, according to Reuters.
Analysts suggest that current market conditions, such as rising input costs and shifting consumer preferences, might make a merger more feasible now compared to previous attempts, Marketwatch reported.
However, structural and legal obstacles, including Pennsylvania laws and the influence of the Hershey Trust, could pose challenges to the acquisition, Yahoo Finance staff explained.
If successful, this acquisition would significantly enhance Mondelez's presence in the U.S. chocolate market, where Hershey holds a substantial share, according to Reuters report.
The combined entity would boast nearly $50 billion in annual sales, solidifying its position as a global confectionery leader, The Sun reported.
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