Mondelez ends bid to acquire Hershey
NEW YORK — Oreo cookie maker Mondelez says it has ended discussions to buy the Hershey Co., a combination that would have created a global powerhouse selling some of the world’s best known chocolates and snacks.
Hershey had said in June that it rejected a preliminary takeover bid from Mondelez International valued at $22.3 billion, according to FactSet. It said at the time that the offer provided “no basis for further discussion.” A representative for Hershey did not respond to a request for comment Monday. A deal would have been subject to the Hershey Trust, a controlling shareholder.
In a statement, Mondelez CEO Irene Rosenfeld said the company decided “there is no actionable path forward toward an agreement” following additional discussions.
Mondelez, based in Deerfield, Ill., makes Nabisco cookies, Cadbury chocolate and Trident gum. The company was created after a split from Kraft Foods, which has since gone on to combine with Heinz to create the Kraft Heinz Co.
Back in June, the Wall Street Journal reported that Mondelez told Hershey it would take the chocolate maker’s name and move its headquarters to Hershey, Pa., as part of the deal. The acquisition would have made the combined company the candy industry’s largest player, according to Euromonitor International, passing the current No. 1, Mars.
The deal was seen as complementary in part because Mondelez gets most of its revenue from overseas, while Hershey gets most of its revenue from North America.
The offer to buy Hershey came as the charitable trust that controls the company has been in turmoil. In July, the trust said a board member was resigning.