Cadbury owner pursues US rival in £17bn takeover bid

US chocolate maker Hershey has rejected a £17bn ($23bn) takeover offer by Cadbury parent Mondelez International, according to reports in the United States.

The massive deal would give Mondelez control of some of the world’s leading chocolate brands.

The attraction of Hershey is an obvious one for Mondelez, a subsidiary of Kraft, as it would have given it access to its massive supply and distribution chain. It would also offer opportunities to cross-sell some of the chocolate brands and possibly raise the Cadbury profile in the massive US market.

Hershey is controlled by a charitable trust, which is the company’s main shareholder. The charity, thought to be worth around $12bn, was created by the firm’s founder in 1894 and is further evidence of the philanthropic attitudes which characterised Victorian confectioners and is closely aligned with Cadbury’s own Quaker origins.

Hershey said in a statement that its board had “unanimously rejected” the approach by Mondelez and that there was no basis for discussion with its rival.

Reuters news agency, citing a source, said Mondelez had tried to reassure its target that it would be able to keep its name and that jobs would be preserved.

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