Hershey - could now be a prize target for Nestle

Thursday, 28 January 2010

LONDON (Reuters) - Swiss food group Nestle is likely to set itself a long-term goal to buy Hershey after the Kraft-Cadbury deal, hoping that market pressures will wear down opposition from the controlling Hershey Trust. Nestle, the world's largest food group is set to drop to No. 3 in the chocolate world behind Mars-Wrigley and Kraft-Cadbury, an unfamiliar role for a company that holds No. 1 or No. 2 positions in all its key segments. If Nestle bought Hershey it would put Nestle at No. 1 position again. The charitable Hershey Trust controls 80 percent of voting shares at the maker of Hershey Kisses, effectively blocking any takeover, analysts believe hurdles preventing a takeover or even a joint venture will now start to ease. They argue that after Kraft and Cadbury join, Hershey's main U.S. market will become more competitive and that Hershey as a pure confectionery player is more exposed to commodity costs like cocoa and sugar than wider ranging groups. It is believed that an offer around .. You need to be a subscriber of Kennedy's Confection to read the rest of this story Click here or subscribe to Kennedy's Confection

 

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