Mondelez International Inc, the maker of everyone’s favourite Oreo cookies and Cadbury chocolates has given up the pursuit of acquiring Hershey Co, two months after the US chocolate company turned down the $23 billion cash-and-stock bid. Hershey rejected a $107 per share acquisition offer from Mondelez at the end of June this year.
Irene Rosenfeld, CEO Mondelez, approached John Bilbrey, CEO Hershey, again last week and indicated that Mondelez would be willing to offer up to $115 per share for Hershey, a report by Economic Times said. Due to a change in membership within the trust set up by found Milton Hershey, the company said that the trust would not be able to consider an offer until it is reconstituted next year. Besides that, Hershey would not be willing to enter into negotiations for an offer less than $125 per share.
“Following additional discussions, and taking into account recent shareholder developments at Hershey, we determined that there is no actionable path forward toward an agreement,” Rosenfeld said in a statement. Since the Hershey trust holds 81% of the company’s voting stock making a sale without the approval of the trust impossible.
Mondelez’s offer was half in cash and half in stock, meaning that new board members of the trust must approve any sale of Hershey. “While we are disappointed in this outcome, we remain disciplined in our approach to creating value, including through acquisitions,” Rosenfeld said on Monday.