Hershey’s main controlling owner has rejected Mondelēz International’s takeover offer, saying it was too low, Bloomberg News reported on Wednesday citing people familiar with the matter.
Bloomberg reported earlier this week that Mondelēz was exploring the acquisition of chocolate-maker Hershey in what would have created one of the world’s largest confectioners.
The Hershey Trust Company’s approval is key in any takeover deal, given its voting control of the chocolate maker.
Hershey and Mondelēz did not immediately respond to Reuter’s requests for comment.
Earlier in the day, Mondelēz said it would focus on ‘bolt-on’ deals, similar to the recent acquisitions of Chipita, Clif and Ricolino.
It also announced a share buyback programme of up to $9 billion.
The Cadbury-maker tried acquiring Hershey in a $23 billion deal in 2016, but the overture was rejected by the trust.
Reuters then reported that Hershey was no willing to enter into deal negotiations for an offer of less than $125 per share.
The Hershey Trust, set up by the company’s founder over a century ago, is a charitable organisation that has as its sole beneficiary Milton Hershey School.
Hershey shares, which surged as much as 19% on Monday following reports of Mondelēz’s bid, were down 3.3% on Wednesday.
Shares of Mondelēz were up 3.5%.
Read More: Cadbury-Owner Mondelēz Exploring Hershey Acquisition – Bloomberg
