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The stock had climbed 25 per cent this year through to Monday’s close, with most of that gain coming when news of Mondelez’s approach became public.
“Combining our two iconic American companies would create an industry leader with global scale in snacking and confectionery,” Irene Rosenfeld, chief executive, said in Monday’s statement.
“While we are disappointed in this outcome, we remain disciplined in our approach to creating value, including through acquisitions.” The merger would have transformed Mondelez into the world’s largest sweet maker and given it a bigger share of the US market – a weak spot for the snack giant.
Hershey generated almost 90 per cent of its revenue in North America last year, with the majority of that coming from selling chocolate in the US.
The announcement sent Hershey shares down as much as 12 per cent to .06 in late trading in New York.Seeing “no actionable path forward toward an agreement”, Mondelez has ended talks over a merger, according to a statement from the Oreo and Cadbury’s eggs maker on Monday.Hershey’s board had said on 30 June that it unanimously rejected Mondelez’s 7-a-share bid.“Not a lot of other companies can do that kind of combination.” But Hershey, which is controlled by a non-profit trust, spurned the cash-and-stock offer.The chocolate maker said in June that its board “determined that it provided no basis for further discussion between Mondelez and the company”.