Mondelez abandoned the acquisition of Hershey


The manufacturer of the cookies Oreo – Mondelez International, abandoned the acquisition of Hershey Co. after the famous creator of chocolates rejected its latest offer. All this put an end to the ongoing for  months campaign of acquisition, which was going to create the largest company for sweets in the world, writes Wall Street Journal.

Last week Hershey rejected the new offer of Mondelez, which was the second since June, saying it would be difficult to make a deal before the new year because of the change in its controlling shareholder Hershey Trust Co., according to sources familiar with the matter.

Late on Monday Mondelez issued a statement which said that there is no option to acquire Hershey, which confirmed that there were further conversations, but did not reveal more.

The failure of Mondelez in the acquisition will likely reinforce the view of analysts and investors that Hershey is an unattainable goal.

Hershey Trust, which controls about 81% of the votes of shareholders in Hershey, is in the process of reviewing its own board of directors following an investigation of Regulators. In this regard, investors were hesitant if Mondelez will be able to obtain approval for the deal in a period of uncertainty.

The CEO of Mondelez Irene Rosenfeld abandoned her goal to create a giant that will take advantage of its enormous size and the combination of big brands such as Chips Ahoy and Reese.

Hershey’s shares fell in value by 12% in the post-trade on Monday, while those of Mondelez rose by 3.4%.

Initially, Mondelez offered $23 billion to Hershey wrote in June Wall Street Journal. The company refused the offer, which amounted to 107 dollars per share, half in cash and half in shares.

Rosenfeld has said the CEO of Hershey John P. Bilbrey that she is willing to raise the offer to $115 a share, according to sources familiar with the matter. Hershey insisted that the starting point of the discussion should be a price of $125 per share.

About the Author

Martina T.
Martina Terzieva is a content writer for Business News Feeds. She likes to dig deep, find the most interesting things that happen and share them with the world. Besides news, Martina writes poetry, she's also a musician and a sound engineer.

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