In June, Mondelez had made a proposal to acquire Hershey in a cash-and-stock deal valued at about $23 billion, a combination that would have created the world’s largest candy maker. Hershey’s board, however, unanimously rejected the $107-per-share bid.
“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,” Mondelez chairman and chief executive officer Irene Rosenfeld said in a statement late Monday.
“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,” she added.
Mondelez’s products include biscuits, chocolate, gum, candy and powdered beverages, with such billion-dollar brands as Oreo, LU and Nabisco biscuits; Cadbury, Cadbury Dairy Milk and Milka chocolate; and Trident gum.
“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,” Rosenfeld stated.