Mondelez explores offer to buy Hershey

The Street

TheStreet’s Conway Gittens brings you the biggest news of the day, including what investors are watching and a mega-merger in the food industry is on the horizon

Transcript

00:00I'm Conway Gittins reporting from the New York Stock Exchange.

00:02Here's what we're watching on the street today.

00:04A minor pullback across Wall Street from record highs,

00:08merger and acquisition activity gave investors something to focus on.

00:11Omnicom and Interpublic announced plans to merge in what would create

00:15the world's biggest advertising agency.

00:18Looking ahead to Tuesday, investors will get a look at third-quarter productivity

00:22and quarterly results from GameStop.

00:26In other news, Wall Street is salivating over talk of a possible offer

00:30to merge Hershey's and Mondelēz.

00:33If that deal were to happen,

00:34it would create one of the biggest food and beverage conglomerates in the world.

00:39Hershey's has reportedly hired a team to come up with a response

00:42to Mondelēz's unsolicited offer.

00:45So what's literally on the table if this deal is a go?

00:48Hershey has a storied 130-year history,

00:51including its eponymous Hershey Kiss and Chocolate Bar.

00:55It also has Kit Kat, Twizzlers, York Peppermint Patty,

00:58Reese's Peanut Butter Cup and Skinny Pop Popcorn, just to name a few.

01:03From Mondelēz, which was spun off from Kraft Foods in 2012,

01:07we get Cadbury, Chips Ahoy, Oreo, Ritz Crackers, Sour Patch Kids,

01:13Velveeta, Cliff Bars, Paul's Cough Drops, Toblerone Chocolate,

01:17Wheat Thins and others.

01:19This wouldn't be the first time an offer was put on the table.

01:22Hershey rebuffed Mondelēz back in 2016.

01:25But times have changed.

01:27The rise of GLP-1 weight loss drugs has led to a drop in sales.

01:32Soaring food production costs have dented profits for both.

01:35Combined, the two companies took in $47 billion in annual sales in 2023.

01:42And that'll do it for your daily briefing from the New York Stock Exchange.

01:45I'm Conway Gittins with The Street.

01:49Thanks for watching.

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