A PYMNTS Company

US: Hershey rejects $23 billion Mondelez takeover offer

By  |  July 3, 2016

Hershey has rejected a $23 billion takeover bid by Mondelez International that would seek to expand the latter’s limited US footprint and create the world’s largest confectioner.

The snub underscores the challenges Mondelez chief executive Irene Rosenfeld faces in wooing Hershey’s controlling shareholder, the Hershey Trust, a $12 billion charity created by the eponymous company’s founder a century ago.

The maker of Hershey’s Kisses and Reese’s Peanut Butter Cups saw its shares trade above Mondelez’s bid of $107 per share in cash and stock, indicating investors expected a new offer.

A merger of two of the world’s top five candy makers would add Hershey’s strong US business to Mondelez’s global footprint.

Earlier, a source said that Mondelez had sought to provide assurances to Hershey that it would keep its name and preserve jobs. Mondelez sees little antitrust risk given the limited geographic overlap of the two companies’ businesses, the source added.

“The board of directors of the company unanimously rejected the indication of interest and determined that it provided no basis for further discussion between Mondelez and the company,” Hershey said in a statement.

Full Content: Irish Times

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.