Mondelez no longer pursuing Hershey: What now?
Mondelez announced on August 29, 2016 that it had ended discussions with US chocolate maker Hershey regarding a possible acquisition. Mondelez’s attempt to acquire Hershey reflects the company’s drive to boost profitability and scale in snacking and confectionery. While the Hershey acquisition would have improved Mondelez’s chocolate position in the U.S. market, the price was too steep – for now, according to an insider.
Mondelez’ CEO has now signalled that aggressive cost cutting will continue to define the company’s path to greater profitability. As a rapidly evolving financial machine that has increased profits by squeezing workers and continuous restructuring, we may see another merger or acquisition involving Mondelez in the future. Kraft Heinz, PepsiCo’s Frito-Lay division and General Mills are all rumored possibilities.
In response to any restructuring announcements, we suggest IUF affiliates request detailed information about the impact of the proposed restructuring on jobs and working conditions. Please share this information with the IUF Secretariat.