Mondelez says it ended talks to buy Hershey

FILE - This July 25, 2011, file photo shows Hershey's chocolate in Overland Park, Kan. Oreo cookie maker Mondelez says it has ended discussions of a possible merger with The Hershey Co. In a statement, Mondelez CEO Irene Rosenfeld said the company decided "there is no actionable path forward toward an agreement" following additional discussions. (AP Photo/Charlie Riedel, File)
FILE - In this Oct. 7, 2009 file photo, Kraft Foods Inc. CEO Irene Rosenfeld speaks at the World Business Forum in New York. Oreo cookie maker Mondelez says it has ended discussions of a possible merger with The Hershey Co. In a statement, Mondelez CEO Irene Rosenfeld said the company decided "there is no actionable path forward toward an agreement" following additional discussions. (AP Photo/Mark Lennihan, File)

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 Inc. valued at roughly $22.3 billion, according to FactSet. It said at the time that the offer provided "no basis for further discussion."

A representative for Hershey said the company had no comment beyond acknowledging that it had been in talks with Mondelez and that they had fallen through. A deal would have been subject to the Hershey Trust, a controlling shareholder.

Hershey shares slid 11 percent in after-hours trading, to $99.25. Mondelez shares added 3.4 percent, to $44.50, in extended trading.

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, Illinois, 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 ketchup maker Heinz to create the Kraft Heinz Co.

Back in June, The Wall Street Journal had reported that Mondelez told Hershey it would take the chocolate maker's name and move its global headquarters to Hershey, Pennsylvania 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 Inc.

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. Later, Pennsylvania's attorney general said it reached an agreement with the trust that involved five board members leaving, and limiting compensation. The agreement came from an investigation into the trust's compliance with a 2013 agreement.

You may also interested in

Self-driving cars go public; Uber offers rides in Pittsburgh

Aug 18, 2016

The option to hail a ride in a self-driving car will soon be available to Uber users in Pittsburgh

US stocks take small losses as energy companies slide

Aug 19, 2016

US stocks take small losses as the dollar regains a bit of strength and energy companies trade lower

Several tornadoes likely hit Indiana, Ohio; no bad injuries

Aug 25, 2016

Authorities say a wave of severe storms likely produced several tornadoes in Indiana and Ohio, damaging homes and businesses but causing no serious injuries

People also read these

Self-driving cars go public; Uber offers rides in Pittsburgh

Aug 18, 2016

The option to hail a ride in a self-driving car will soon be available to Uber users in Pittsburgh

Valeant, attempting to normalize operations, names new CFO

Aug 22, 2016

Valeant Pharmaceuticals is replacing Robert Rosiello as chief financial officer as the embattled pharmaceutical company attempts to normalize operations amid a host of ongoing investigations and class action suits

Beer mega merger: what court ruling means for troubled deal

Aug 23, 2016

A British court has recommended that two classes of shareholders be created and vote separately on AB InBev's 79 billion pound ($104 billion) takeover of SABMiller

Emporium Post fulfils the need to know all things about consumers and how businesses can take this opportunity to reach their own customers.

Contact us: sales@emporiumpost.com

Join our mailing list now!