Luke Sharrett /Bloomberg / Getty Images
What you need to know
- Hershey shares fell as traders digested updates suggesting that it was unlikely to merge with Mondelēz International.
- Mondelēz said it was focused on purchases that are easier to pull off, and Bloomberg reported its bid was rejected as too low.
- The candy company previously rebuffed an acquisition offer from Mondelēz in 2016.
Hershey (HSY) shares fell Wednesday as traders absorbed news that the candy giant might be less likely to merge with Mondelēz than first thought.
Mondelēz International (MDLZ) on Wednesday said it is sticking to a strategy of scooping up brands that are comparatively easy to acquire, part of an announcement of a stock buyback plan. Bloomberg News earlier in the week reported that the Chicago-based conglomerate was exploring a Hershey takeover.
Hershey rejected an offer from Mondelēz it considered too low, Bloomberg reported Wednesday. Shares of Hershey, which sells Kisses and Kit Kat bars, shot up by double digits Monday after Bloomberg's initial report.
"The company remains committed to an acquisition strategy that is focused on bolt-on assets similar to recent acquisitions of Chipita, Clif and Ricolino," Mondelēz said in an announcement early Wednesday morning. Mondelēz didn't immediately respond to a request for comment Wednesday.
Hershey shares fell by about 3% in the recent trade. Mondelēz shares were up by a similar amount.
In 2016, Hershey declined an acquisition offer from Mondelēz, which sells Toblerone chocolates and Triscuit crackers.
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