Analysts at Bernstein have examined whether Hershey Co could pursue an acquisition of Mondelez International or expand existing partnerships between the two confectionery companies.
Hershey and Mondelez have recently collaborated on product launches, including Reese’s items containing Oreo pieces and Oreos with Reese’s pieces, introduced in the second half of 2025. Mondelez has also developed a significant presence in China, with estimated annual sales of about $2 billion.
Bernstein modeled a potential acquisition scenario under which Hershey would pay a 15% premium for Mondelez. In a three-times net debt to EBITDA leverage scenario, Hershey’s earnings per share would be diluted by roughly 5% in the first year. However, if cost synergies equivalent to 8.5% of Hershey’s sales were realized over two to three years, the deal would become nearly 11% accretive to EPS. Under this structure, the Hershey Trust’s voting stake would decline to about 51%, while its ownership of outstanding shares would fall to approximately 9.8%.
A higher leverage scenario of four-times net debt to EBITDA would result in less than 2% initial EPS dilution, with accretion reaching nearly 16% after the same synergy period. Bernstein did not provide a valuation range or confirm any ongoing negotiations.
Hershey’s governance structure grants the Hershey Trust control of about 79% of voting rights through Class B shares, each carrying 10 votes compared with one vote per Class A share. Neither Hershey nor Mondelez has publicly commented on a potential transaction.
