Mondelēz International has formally withdrawn its $23bn bid to acquire The Hershey Company in an effort to create an industry leader ‘with global scale in snacking and confectionery’.

 

This was fully expected, following the earlier rejection of the offer back in June. Mondelēz confirmed yesterday that discussions have now ended between the two companies, regarding ‘a possible combination’.

 

In a statement, Chairman and CEO Irene Rosenfeld said: “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.

 

 

 

 

 

 

“…NO ACTIONABLE PATH FORWARD…”

“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.”

 

She concluded: “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.”

 

Theoretically, the combination of both companies could have potentially created a $37bn industry leader in the business – combining Mondelēz’s $29bn-plus sales with Hershey’s $7.4bn – with Hershey’s strength in the US market in particular was an undoubted attraction for Mondelēz.