Hershey and Ferrero may enter battle over Cadbury
Just recently we reported that Kraft Foods had placed an official offer of slightly more than $16 billion to buy UK’s Cadbury, the world’s second biggest confectionery company. But Cadbury’s board immediately rubbished the offer, calling it “derisory”. While it wasn’t exactly clear if that meant “come back with more money” or “never come back”, the space suddenly opened for other, albeit smaller players in the cheap sugar game. The Wall Street Journal reported on Wednesday that’s exactly what may be happening with the oldest American chocolate company, Hershey, (producer of Kisses, Ice Breaker chewing gum and 5th Avenue candy bars, among many others). In Italy, family-owned Ferrero, (makers of Nuttela and Ferrero Rocher) are also contemplating an offer. Neither Hershey nor Ferrero are really big enough to buy Cadbury on their own, but they may join their own respective syndicates as the possible managing partners, should the bid succeed to melt Cadbury’s defences.
Read more: BBC News, Bloomberg, MarketWatch