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Check Out Line: Will Hershey Trust resolve eventually melt?


Check out Nestle’s waiting game. USA/

It could take years, but analysts in Europe think that Nestle is waiting for the pressure of competing with two confectionery giants on its home turf to eventually melt Hershey’s resolve, letting Nestle buy the Pennsylvania-based chocolate maker.

While Pennsylvania law says the state’s attorney general would have to approve any deal that dilutes the Hershey Trust’s control over the candy maker, analysts think that eventually the trust will have to look at a Nestle bid.

Kraft’s $18.7 billion deal to buy Cadbury will likely put more pressure on Hershey in the United States, where Hershey sells most of its candy. The deal will likely edge Kraft ahead of U.S.-based Mars Inc for world supremacy in the confections market.

Hershey scrambled to come up with a counterbid for Cadbury, the last best chance Hershey had to significantly expand its business outside of the United States, but failed to put an offer together that could trump Kraft.