Deerfield, Illinois-based Mondelez, the global snacks company that makes Oreo cookies and Ritz Crackers, recently sent a letter to Hershey proposing the combination, the Journal writes. As part of the proposal, Mondelez is pledging to protect jobs following any merger and move its chocolate headquarters to Hershey's home in Hershey, Pa. Hershey's market capitalization increased to $24.5 billion after the stock's jump. Mondelez's stock surged 2.1%, taking its market cap up to $68.1 billion.
- Merged company to be called Hershey
- HQ in Pennsylvania
- No job cuts in Pennsylvania
- Kit Kat license would go back to Nestlé
- Contingent on approval from the Hershey Trust
- Hershey said on Thursday it had rejected the $23 billion preliminary offer by Mondelez
Holding the key to the sale of America's second-biggest candy company is a scandal-scarred, $12 billion charity that all but owns Hershey, Pennsylvania.
Hershey Trust Co. controls about 80 percent of Hershey Co., guides the 107-year-old Milton Hershey School, and oversees an amusement park and resort in the town of about 14,000.
Its 10 trustees have been averse to deals, scuttling efforts to separate them from their candy-coated source of cash.
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