FDBusiness.com

Mondelēz International has ended discussions with The Hershey Company, the US-based confectionery and snacks manufacturer, regarding a possible combination of the two companies. The board of Hershey rejected a $23 billion cash and share bid from Mondelēz made a couple of months ago. Mondelēz is reported to have sweetened the offer but to no avail.

“As the world’s leading snacking company, we remain focused on successfully executing our strategy to deliver both sustainable top-line growth and significant margin expansion and are well-positioned to continue to deliver value to our shareholders,” says Irene Rosenfeld, chairman and chief executive of Mondelēz International. “Our proposal to acquire Hershey reflected our conviction that combining our two iconic American companies would create an industry leader with global scale in snacking and confectionery and a strong portfolio of complementary brands. Following additional discussions, and taking into account recent shareholder developments at Hershey, we determined that there is no actionable path forward toward an agreement. While we are disappointed in this outcome, we remain disciplined in our approach to creating value, including through acquisitions, and confident that our advantaged platform positions us well for top-tier performance over the long term.”

Hershey is controlled by a charitable trust which owns 81% of the company.