Updated from 4:36 PM EDT.
"Our proposal to acquire Hershey reflected our conviction that combining our two iconic American companies would create an industry leader with global scale in snacking and confectionery and a strong portfolio of complementary brands," CEO Irene Rosenfeld said in a statement.
Following further discussion and recent shareholder developments at Hershey, Mondelez said it would no look to combine the two companies.
The Deerfield, IL-based snack manufacturer made a $23 billion, or $107 per share bid, for the company early in July, which Hershey later rejected.
Mondelez had increased its offer for the company to $115 per share last week, but Hershey said talks would need to start at $125 per share, a source told the Wall Street Journal.
Additionally, Hershey said its trust board would need to be reconstituted before a deal could occur and this likely would not happen until next year, the Journal added, citing a source.
"While we are disappointed in this outcome, we remain disciplined in our approach to creating value, including through acquisitions, and confident that our advantaged platform positions us well for top-tier performance in the long term," Rosenfeld added.
Shares of Hershey were sliding 11.53% to $98.80 in after-hours trading on Monday.
Separately, TheStreet Ratings objectively rated Mondelez stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "buy" with a ratings score of B.
The company's strengths can be seen in multiple areas, such as its notable return on equity, expanding profit margins, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth and increase in stock price during the past year. We feel its strengths outweigh the fact that the company shows weak operating cash flow.
You can view the full analysis from the report here: MDLZ