20 Takeover Rumors Hedge Funds Are Buying

12. The Hershey Company (NYSE:HSY)

No. of Hedge Funds: 38

The Hershey Company (NYSE:HSY), based in Pennsylvania, is a global leader in confectionery and snack manufacturing. Their iconic brands include Hershey’s, Reese’s, Kit Kat (US), and SkinnyPop. The company serves various consumer segments across North America and internationally. Mars and Mondelez put up heavy competition for the company domestically and internationally. However, The Hershey Company (NYSE:HSY) differentiates itself through brand loyalty and agile supply chain management, increasing its market share. The company recently expanded its portfolio by adding salty snacks, and it has also entered digital sales channels to satisfy the evolving dietary trends and consumer behavior patterns.

The parent company of Cadbury, Mondelez International, in 2024, was rumored to explore acquiring The Hershey Company (NYSE:HSY). While the takeover rumor caused a decline in the share value of Mondelez International, HSY’s shares were surging. It was because the potential merger of the two companies would result in a global confectionery giant with combined sales of close to $50 billion. However, it should be noted that these takeover rumors were not new for Mondelez International, as the company had already been rumored to have shown interest in the purchase of The Hershey Company (NYSE:HSY) in 2016.

On the other hand, 38 hedge funds piled into the stock, reflecting significant institutional interest, which could be arising from the investors entertaining the takeover rumor.