Mondelez’s chief executive, Irene Rosenfeld, said the company decided “there is no actionable path forward toward an agreement” following the latest discussions between the two companies.
Had the deal gone through the new entity would have represented a global powerhouse with some of the world’s best-known chocolates and snacks in its products range including Cadbury and Oreo.
In June, Hershey revealed that its controlling shareholder, the Hershey Trust, had rejected a preliminary takeover bid from Mondelez International valued at roughly $22.3bn.
The same month Mondelez informed Hershey that it would take its name and move its global headquarters to Pennsylvania.
Euromonitor International said the acquisition would have resulted in the new company overtake Mars Inc to become the top player in the chocolate industry. Hershey shares have subsequently slide 11 per cent in after-hours trading while Mondelez shares added 3.4 per cent in extended trading.