Mondelez drops merger plans with Hershey

 31 Aug 2016 - 0:00

Mondelez drops merger plans with Hershey
Hershey’s chocolate bars in Chicago, Illinois.


Washington: US industrial snacks giant Mondelez International said it had dropped plans to merge with chocolatier The Hershey Company.
The announcement came nearly two months after Hershey, the maker of Reese’s Peanut Butter Cups and Hershey’s Kisses, rejected a $23bn takeover offer from Mondelez.
“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 said in a statement, adding that executives were “disappointed.”
The merged company would have overtaken Mars as the world’s largest candy purveyor. In June, the Hershey board of directors said it had “carefully reviewed” a bid of $107 per share for the company and found it offered “no basis for further discussion.”
Hershey had in 2002 also rejected a $12.5bn takeover offer from Wrigley, which is now a unit of Mars.
Founded in 1984 by Milton Hershey, the Hershey Company is an iconic American brand controlled by a family trust which overseas charitable funds. The Deerfield, Illinois-based Mondelez, formerly known as Kraft Foods, also produces popular lines of sweets, including Oreo and Chips Ahoy! cookies.