U.S.-based The Hershey Co and Italy’s Ferrero Group both submitted final bids on Friday to acquire Nestlé’s U.S. confectionery business, Cnbc reported on Monday.
The report indicates Ferrero, Alba, Italy, could be the current front-runner as it had made a “more aggressive” bid, it said.
Still, it may take another week or so to come to a decision, the sources said. Private equity firms have also expressed interest, sources said.
The business, which includes iconic brands such as Butterfinger, Baby Ruth, Sno-Caps and Laffy Taffy, is valued at USD2 billion to USD2.5 billion, the sources added.
Last year, Ferrero agreed to acquire Ferrara Candy, from its private equity owner and has expressed an ambition to expand its business.
Separately, Hershey announced plans to purchase Amplify Snack Brands, which makes Skinny Pop popcorn, for about USD1.6 billion last month. Analysts said that the deal was a sign that the group best known for its Hershey Kisses was diversifying into snacks.
