Hershey (HSY, Financial), a major U.S. chocolate producer, has rejected an initial acquisition offer from Mondelez (MDLZ). The deal aimed to create a food giant with nearly $50 billion in total sales, potentially one of the largest in packaged food industry history. Hershey Trust Co., holding about 80% voting rights in Hershey, declined the offer citing it as too low. Mondelez, with a market value of $84 billion, had previously attempted a $23 billion acquisition of Hershey in 2016.
Mondelez recently approved a $9 billion stock buyback plan, focusing on strategic acquisitions. Hershey's valuation, including debt, exceeds $40 billion. The company faces rising cocoa and sugar costs, impacting financial forecasts amid consumer budget concerns.
