“Following additional discussions, and taking into account recent shareholder developments at Hershey, we determined that there is no actionable path forward toward an agreement,” Mondelez said in a statement.
Mondelez’s offer in June consisted of US$107 in cash and stock for every Hershey share — a 10 per cent premium at the time.
Rosenfeld had also approached Hershey Chief Executive John Bilbrey again last week, and indicated that Mondelez would be willing to offer up to US$115 per share for Hershey.
Hershey responded that the trust would not be able to consider an offer until it is reconstituted next year.
The Hershey Trust, which controls about 81 per cent of Hershey’s shareholder votes, is in the midst of overhauling its own board of directors following an investigation by state regulators, and investors had wondered if Mondelez would be able to win its approval by striking during a period of uncertainty.
The proposed tie-up would have created a major global snacking giant with US$37 billion in annual sales and could have combined Mondelez’s Nabisco, Oreo and Cadbury brands with Hershey’s namesake chocolates, Reese’s, and Kisses candies.
“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,” said Chairman and CEO, Mondelez, Irene Rosenfeld in a statement.
“While we are disappointed in this outcome, we remain disciplined in our approach to creating value, including through acquisitions,” Rosenfeld said