NEW YORK (TheStreet) -- The $107 per share Mondelez (MDLZ) bid to acquire Hershey (HSY) - Get Hershey Company (HSY) Report , which was announced earlier today, "makes a lot of sense," Mark Asset Management's President Morris Mark said on CNBC's "Squawk Alley" Thursday.
If approved, the deal will create a giant, global confectionery company, which would take the Hershey name, with a $24 billion market cap, CNBC's Kayla Tausche reported.
"What do you think of the valuation at this market price?" Tausche asked.
"In today's world, nothing is expensive," Mark replied.
Taking into consideration these big-brand companies' balance sheets, amount of cash they have, their easy ability to generate cash and "the fact that they can borrow money for next to nothing, it just seems to make a lot of sense," Mark continued. The Mondelez bid is half cash, half stock.
If a company has the basis for a legitimate, strategic transaction and the cash and reason to do it, then "you can pay a lot of money," he commented, noting the recent Microsoft (MSFT) $26.2 billion acquisition bid of LinkedIn (LNKD).
"We could see a lot more (mergers) if there was more confidence," Mark added.
Shares of Hershey are spiking by 15.65% to $112.34 midday Thursday on news of the deal offer.
Separately, TheStreet Ratings rated Hershey as a "buy" with a score of B.
This is driven by some important positives, which can be seen in multiple areas, such as its expanding profit margins, good cash flow from operations, notable return on equity and solid stock price performance. TheStreet Ratings feels its strengths outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: HSY
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.