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Cadbury Schweppes may Attempt to Purchase Hershey

The giant confectionery and beverage company, Cadbury Schweppes, headquartered in Berkeley Square, London, UK has expressed interest in purchasing control of its rival America`s largest chocolate company, Hershey, headquartered in Hershey, Pennsylvania, USA. In 2002, Cadbury attempted to take over Hershey, with the assistance of Nestle. Cadbury`s CEO, Todd Stitzer, said a merger with Hershey would benefit Cadbury now more than it would have in 2002, saying it would be beneficial commercially, strategically and financially, the Financial Times reported.
According to Stitzer, a merger is more attractive now than in 2002, since Cadbury has since increased its presence in the US market through its purchase of the gum manufacturer Adams in 2003. Stitzer did say that not much has change in Hershey since the last merger talks, which were blocked by Hershey`s controlling trust because of opposition from Pennsylvania lawmakers.

John McMillin, a Prudential analyst with a ``sell`` rating on Hershey claims that``The idea suggested in today`s Financial Times that Cadbury might be the buyer and Hershey the seller is far fetched." Hershey bought the license to manufacture and sell Cadbury`s products in the United States, in 1998, after the British company was unable to make progress in the American market, mainly due to sale and distribution difficulties. If Cadbury does buy Hershey, it will repurchase the rights to distribute many of its brands in North America. On March 15, Cadbury Schweppes announced it plans to split up to two separate companies, one selling candy, while the other will sell beverages. Stitzer said he hopes to build the world`s largest and best candy company.