News of the potential merger broke a couple months ago. On June 30, Hershey rejected a $107 per-share takeover bid from Mondelez, when its stock was trading around $97.
Investors were expecting a bigger offer, but it never materialized. Hershey hit a high around $117, but all of those gains will likely be wiped out when the stock opens for trading tomorrow.
Mondelez said via statement:
“As the world’s leading snacking company, we remain focused on successfully executing our strategy to deliver both sustainable top-line growth and significant margin expansion and are well-positioned to continue to deliver value to our shareholders,” said Chairman and CEO Irene Rosenfeld. “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. Following additional discussions, and taking into account recent shareholder developments at Hershey, we determined that there is no actionable path forward toward an agreement. While we are disappointed in this outcome, we remain disciplined in our approach to creating value, including through acquisitions, and confident that our advantaged platform positions us well for top-tier performance over the long term.”
Hershey shares fell $12.77 (-11.44%) to $98.90 in after-hours trading. Prior to today’s news, HSY had gained 25% year-to-date.