(Reuters) -Mondelez said on Wednesday it would focus on “bolt-on” deals days after a report that the Cadbury parent was exploring the acquisition of Hershey.
Hershey shares, which surged as much as 19% on Monday following Bloomberg’s report that Mondelez had made a preliminary approach about a possible combination with the company, were down about 5% in premarket trading.
Shares of Mondelez were up about 3%.
“The company remains committed to an acquisition strategy that is focused on bolt-on assets similar to recent acquisitions of Chipita, Clif and Ricolino,” the maker of Milka and Toblerone chocolate said.
Mondelez’s deals with Chipita, Clif and Ricolino in 2022 were all under $3 billion.
In contrast, Hershey has a market capitalization of about $38 billion, according to LSEG data.
Mondelez on Wednesday also announced a share buyback program of up to $9 billion.
The latest share buyback plan will start on Jan.
1, 2025, and will be effective until the end of 2027. It will also replace the current $6 billion plan.
(Reporting by Aishwarya Venugopal in Bengaluru; Editing by Anil D’Silva)
