Hershey, PA — The Hershey Co.’s board of directors have turned down the preliminary, non-binding offer from Mondelez International, Inc. to acquire the candymaker for a mix of cash and stock considerations totaling $107 per share, Hershey reports.
The board of directors, with input from management and outside financial and legal advisors, evaluated the offer and unanimously rejected it, determining it provided no basis for further discussions between the two companies, according to Hershey.
News of the possible deal was initially reported by the Wall Street Journal, which noted that Mondelez had promised to protect jobs at the chocolate maker, as well as relocate its global headquarters to Hershey, PA, and rename the company Hershey if the deal had been approved.
“The news that Hershey was the subject of a bid from Mondelez has certainly captured the imagination of those in the food industry,” says Jack Skelly, food analyst at Euromonitor International Ltd. “Yet, rumors of an acquisition of Hershey have persisted for some time, suggesting the part public, part trust-owned business has been seriously considering selling.”
Skelly notes the deal would of made sense from a geographic perspective, as Mondelez has become the second largest confectionery manufacturer globally without a sizable presence in the world’s largest chocolate market — the U.S.