The Hershey Company has rejected a takeover offer by global snacks giant Mondelez International, understood to be worth around $US23 billion.
The Hershey Company announced in a statement it had received a preliminary, non-binding indication of interested from Mondelez International to acquire the company for a mix of cash and stock consideration, totaling $107 a share of Hershey common stock. However, Hershey’s confirmed the company’s board of directors had “unanimously rejected” the offer.
The Hershey Company has more than 80 brands around the world that drive more than $US7.4 billion in annual revenues, including Hershey’s, Reese’s, Hershey’s Kisses, Jolly Rancher, Ice Breakers and Brookside.
According to Euromonitor International, the acquisition, had it been accepted by The Hershey Company, would reinstate Mondelez as the largest confectionery player in the world by some margin, with around 18 per cent market share, and the second largest packaged food manufacturer in the world, with 3 per cent share of total sales.