Why Did Hershey Reject $23B Takeover Bid From Mondelez?

Mondelez International made a strategic bid for Hershey to gain more exposure in the US market, as their efforts in emerging markets have not met expectations. Hershey, which controls the US license for Kit Kat, rejected the offer due to the Hershey Trust's significant voting power. Despite the rejection, Hershey's shares rose, indicating investor interest. Mondelez may continue to explore US opportunities, signaling a shift in their market strategy.

What was the primary reason for Mondelez's interest in acquiring Hershey?

• To acquire new technology

• To expand into the European market

• To gain a stronger presence in the US market

• To diversify into non-snack products

Who controls the license to sell Kit Kat in the US?

• Nestle

• Hershey

• Mars

• Mondelez

What percentage of Hershey's voting rights is controlled by the Hershey Trust?

• 70%

• 50%

• 60%

• 80%

How have changing consumer preferences affected Hershey's market position?

• Increased demand for milk chocolate

• Shift towards healthier and premium chocolate options

• Higher sales of sugary snacks

• Stable demand for traditional chocolate bars

What strategic shift is Mondelez considering according to the transcript?

• Exiting the snack business

• Merging with Nestle

• Expanding into the US market

• Focusing solely on emerging markets