03:01 PM EST, 12/10/2024 (MT Newswires) -- Mondelez International's ( MDLZ ) potential acquisition of Hershey (HSY) would be "great" for Pennsylvania-based chocolate maker's shareholders, but the same could not be said for Mondelez ( MDLZ ) investors in the near term, RBC Capital Markets said in a note Tuesday.

Bloomberg on Monday reported that Mondelez ( MDLZ ) was once again exploring the acquisition of Hershey, having previously walked out of bidding in 2016.

RBC said the acquisition, which could reportedly result in a company with nearly $50 billion in sales, made sense from a "variety of angles" as it would help Mondelez ( MDLZ ) boost growth and give it greater exposure to the confectionery business in the US.

Despite the synergies, the deal could face some near term complexities in integration and talent, the firm noted. RBC also said Hershey could call for the combined business to be managed from its headquarters in Hershey, Pennsylvania.

There was also the matter of the Hershey Trust's controlling interest, the firm noted. The trust's focus is on the longevity of the Milton Hershey School, which would be one of the main factors in considering a potential deal.

Still, Mondelez ( MDLZ ) Chief Executive Dirk Van de Put has a "knack" for buying family-owned enterprises and his unique background will be an asset in any potential deal, RBC wrote.

The firm has a sector perform rating for Hershey with a price target of $183.

Price: 62.01, Change: +0.57, Percent Change: +0.93