Confectionery company Mondelez announced the termination of attempts to merge with rival Hershey, reports Reuters.
It is reported that ranked second in the world in terms of market share Mondelez offered to purchase the shares is ranked fifth in the world for Hershey $ 23 billion.
The combined company would become the world leader in the confectionery market.
“The combination of two iconic American companies would create a global leader in the snack and confectionery industry with a large portfolio of related brands. As a result of additional discussions, as well as taking into account the recent actions of Hershey shareholders, we realized that there is no way to an agreement, ”- the words of the CEO of Mondelez Irene Rosenfeld are quoted.
At the end of June, Hershey declined the offer of Mondelez to purchase shares at $ 107 per share. Later, Mondelez raised its offer to buy up to $ 115 per share, sources in the company said. However, the owners of Hershey said they are ready to enter into negotiations on a merger at a price per share of at least $ 125, the source said. After information about the failure of the transaction shares Hershey on the stock exchange in New York fell to the level of $ 99.
The Attorney General of the State of Pennsylvania is strongly opposed to the sale of Hershey, which in 2002 prevented the sale of Wm. Wrigley for $ 12,5 billion through an injunction amid protests from the local public. In November, the state will elect a new prosecutor general after the resignation of the previous head of state, Kathleen Kane, who left the post after being accused of leaking secret criminal cases in order to discredit a political opponent and falsely prosecute.
The Republican candidate for Attorney General of the Song of the Song, State Senator John Rafferty, has expressed "serious doubts" about the potential sale of Mondelez.
Democratic candidate Josh Shapiro said he will "vigorously defend the continued success of Hershey in Pennsylvania" and will defend the company of "multinational corporations and Wall Street investors who want to destroy Pennsylvania jobs for their own profit."
Mondelez Int. (until 2012 Kraft Foods) owns brands such as Cadbury, Oreo, TUC, Barni, Milka, Alpen Gold, Toblerone, etc. Hershey is one of the oldest American manufacturers of chocolates and other sweets under the same name.