We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Mondelez International (MDLZ) Drops Plan to Buy Hershey
Read MoreHide Full Article
Mondelez International, Inc. (MDLZ - Free Report) recently confirmed that it is no more pursuing the possible merger with The Hershey Company (HSY - Free Report) . Following the announcement, shares of Hershey declined 11.70% in after-hours trading on Monday while that of Mondelez rose 3.81%.
In June, Mondelez offered to acquire Hershey for about $22.8 billion worth of cash and stocks. Mondelez had offered to pay $107 a share, half in cash and half in stock. Mondelez had expected that the merger of the two food giants would create a global leader in snacking, confectionary and complementary brands. However, Hershey’s board of directors unanimously rejected the offer in June.
Mondelez eventually reached the decision after several discussions, taking into account the recent changes in shareholders at Hershey. Reportedly, The Hershey Trust, the company’s largest shareholder, was reluctant about the sale. Moreover, significant changes in management of the Hershey Trust are underway and are expected to take time to complete.
Hershey’s sales trends have been weak since 2014 due to weak category trends, increased competition from broader snacking category and soft international growth. Notably, Mondelez’s volumes have been hurt by category weakness on account of soft consumer demand since 2014. However, both the companies recorded strong margins in the past few quarters backed by cost savings and productivity gains.
Mondelez intends to update investors at Barclays Global Consumer Staples Conference on Sep 7.
Both Hershey and Mondelez carry a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks in the consumer staples sector include Ingredion Incorporated (INGR - Free Report) and Omega Protein Corporation , both sporting a Zacks Rank #1 (Strong Buy).
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Mondelez International (MDLZ) Drops Plan to Buy Hershey
Mondelez International, Inc. (MDLZ - Free Report) recently confirmed that it is no more pursuing the possible merger with The Hershey Company (HSY - Free Report) . Following the announcement, shares of Hershey declined 11.70% in after-hours trading on Monday while that of Mondelez rose 3.81%.
In June, Mondelez offered to acquire Hershey for about $22.8 billion worth of cash and stocks. Mondelez had offered to pay $107 a share, half in cash and half in stock. Mondelez had expected that the merger of the two food giants would create a global leader in snacking, confectionary and complementary brands. However, Hershey’s board of directors unanimously rejected the offer in June.
Mondelez eventually reached the decision after several discussions, taking into account the recent changes in shareholders at Hershey. Reportedly, The Hershey Trust, the company’s largest shareholder, was reluctant about the sale. Moreover, significant changes in management of the Hershey Trust are underway and are expected to take time to complete.
MONDELEZ INTL Price
MONDELEZ INTL Price | MONDELEZ INTL Quote
Hershey’s sales trends have been weak since 2014 due to weak category trends, increased competition from broader snacking category and soft international growth. Notably, Mondelez’s volumes have been hurt by category weakness on account of soft consumer demand since 2014. However, both the companies recorded strong margins in the past few quarters backed by cost savings and productivity gains.
Mondelez intends to update investors at Barclays Global Consumer Staples Conference on Sep 7.
Both Hershey and Mondelez carry a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks in the consumer staples sector include Ingredion Incorporated (INGR - Free Report) and Omega Protein Corporation , both sporting a Zacks Rank #1 (Strong Buy).
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>