Mondelez Says No Longer Pursuing Combination With Hershey

(RTTNews) - Snacks giant Mondelez International Inc. (MDLZ) said Monday that it has ended discussions with Hershey Co. (HSY) regarding a possible combination of the two companies.

Mondelez determined that there was no actionable path forward toward an agreement, following additional discussions, and taking into account recent shareholder developments at Hershey.

Mondelez said it remains focused on successfully executing its strategy to deliver both sustainable top-line growth and significant margin expansion and are well-positioned to continue to deliver value to its shareholders.

"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," said Chairman and CEO Irene Rosenfeld.

In late-June 2016, Snacks giant Mondelez International made a takeover bid of $23 billion to acquire chocolate behemoth Hershey Co. (HSY). Mondelez had offered to buy Hershey for $107 a share in a cash and stock deal. But, Hershey had rejected the offer.