Mondelēz International Inc. has ended discussions with The Hershey Company about a possible merger of the two companies.
In July, Hershey rejected a US$23 billion bid from its rival. The acquisition would have combined Hershey’s strong US business with Mondelēz’s global distribution footprint.
“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 Mondelēz International Chairman and CEO 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.
“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.”
