Mondelez Abandons Hershey Takeover Bid

Posted On: 8/29/2016

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TAGS: Hershey takeover bid, Mondelēz International Inc., Hershey Co. Mondelez merger, vending, Oreo, Irene Rosenfeld

DEERFIELD, IL -- Snack giant Mondelēz International Inc. today announced that it has ended discussions with Hershey Co. regarding a possible combination of the two companies.

Mondelez is stepping back from the potential $23 billion takeover about two months after it had offered $107 per share for Hershey, half in stock and half in cash. The proposed combination would have created a global snacking titan with $37 billion in annual sales. It would have combined Mondelez's Nabisco, Oreo and Cadbury brands with Hershey's namesake chocolates, Reese's and Kisses.

"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," said Mondelez chairman and chief executive Irene Rosenfeld. "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."

However, following additional discussions, and taking into account recent shareholder developments at Hershey, Mondelez determined that there was no actionable path forward toward an agreement, Rosenfeld said.