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Hershey falls after Mondelez says focused on ‘bolt-on’ deals
The Fly

Hershey falls after Mondelez says focused on ‘bolt-on’ deals

Shares of Hershey (HSY) are moving lower after Mondelez (MDLZ) approved a new share repurchase authorization of up to $9B and said it remains “committed to its key capital allocation priorities.” In a statement, Mondelez explained, “The company also remains committed to its key capital allocation priorities, which include reinvesting in brands and capabilities, returning capital to shareholders through share repurchases and dividends, and M&A. Given current market conditions, share repurchase remains an opportunity and key priority. The company remains committed to an acquisition strategy that is focused on bolt-on assets similar to recent acquisitions of Chipita, Clif and Ricolino.” Bloomberg on Monday reported that Mondelez has made a preliminary approach to Hershey (HSY) about a possible combination. Shares of Hershey are down 5% to $178.50 in early trading.

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