Hershey refused to create the world’s largest manufacturer of sweets

Chocolate bars Hershey’s

As reported by Reuters, the Board of Directors of Hershey rejected the proposal by Mondelez, which was estimated at $23 billion In response, the U.S. company indicated that its leadership sees no reason for further negotiations on this issue.

Euromonitor International had to assume that the combined company would have bypassed the size of the company Mars Inc, which currently holds 13.3% of the world market of sweets. In addition, the deal with Hershey would allow Mondelez to control the production of chocolate Cadbury and Kit Kat in the USA.

Mondelez and Hershey are the second and fifth place in the ranking of the largest manufacturers of sweets in the world, according to Euromonitor International, the publication of The Wall Street Journal. At 30 June Hershey capitalization is estimated at $25 billion, Mondelez at $67.2 billion.

Buy Hershey could balance out the assets structure of Mondelez, which relies on foreign markets, writes Bloomberg. Last year almost 90% of revenues came from Hershey on sale in North America, mainly in sales of chocolate in the United States. “From the point of view of access to new markets, the deal proved, — said Bloomberg, Jack Skelly, an analyst at Euromonitor. — Mondelez managed to become the second largest manufacturer of sweets in the world, with only a limited presence in the us market”.