Mars Makes a £534M Offer for Hotel Chocolat – Shares Up 164.8%

The Hotel Chocolat Group PLC (LON: HOTC) share price soared 164.75% after announcing that it had agreed to a takeover offer from HIVE Bidco, a subsidiary of Mars Incorporated. Mars intends to acquire Hotel Chocolat for about £534 million, valuing each of its shares at 375p.

The all-cash offer comes when the Hotel Chocolat is looking to expand overseas but has been struggling to do so, which is where Mars comes into the picture. Mars, a confectionery giant with a global operation, is the right partner to help Hotel Chocolat expand internationally. 

Mars has highly regarded Hotel Chocolat for its exceptional standing as a contemporary, high-end brand. It offers a unique range of products characterised by top-tier quality and a robust direct-to-consumer approach.

The alignment between Mars and Hotel Chocolat extends to their shared values, prioritising quality, sustainability, and a sense of purpose as foundational principles. 

Mars' corporate purpose revolves around shaping a better tomorrow through responsible business practices. At the same time, Hotel Chocolat is resolute in its mission to spread happiness to people and nature by reimagining chocolate.

Mars is confident in its ability to propel Hotel Chocolat into its next growth phase, leveraging its extensive international reach, global supply chain, and commercial relationships. These assets could catalyse Hotel Chocolat's expansion in the UK and into new markets.

The company can work alongside Hotel Chocolat's esteemed founders and management team to create enduring value for all stakeholders while preserving the brand's identity and ensuring the continued delivery of premium, high-quality products to consumers.

The acquisition of Hotel Chocolat aligns with Mars' commitment to the UK market, where it has maintained a presence since 1932 and currently employs approximately 10,000 individuals. This strategic move brings a beloved brand into its portfolio and reinforces its bonds with consumers.

Mars anticipates adding Hotel Chocolat, with its distinct expertise in product innovation, luxury gifting, and immersive brand experiences, will complement its existing endeavours in the UK market.

Hotel Chocolat share price. 

The Hotel Chocolat share price soared 164.75% to trade at 368.00p from Wednesday’s closing price of 139.00p.