Hershey’s has rejected a $23-billion takeover offer (more than Rs 1.55 lakh crore) from Oreo manufacturer Mondelez International Inc, the company said on Thursday. The acquisition of The Hershey Company would have allowed Mondelez to have a better hold of the United States market, where it has limited reach, and also become the largest manufacturer and seller of confectioneries, Reuters reported.

The two confectionery giants have limited common markets for their products. “The board of directors of the company unanimously rejected the indication of interest and determined that it provided no basis for further discussion between Mondelez and the company,” Hershey’s said in a statement.

Hershey’s shares traded above Mondelez’s offer of $107 (around Rs 7,215) per share in cash and stock. While trading of its shares on Thursday ended 16.8% higher at $113.49 (approximately Rs 7,650), Mondelez’s shares rose 5.9% to $45.51 (around Rs 3,070).

According to market research firm Euromonitor International Ltd, the merger of Mondelez and Hershey’s would have made them the world’s largest confectioner, allowing them to top Mars Inc’s 13.3% market share with 18% of it. At present, Mondelez ranks second, whereas Hershey’s takes up the fifth spot.

With the merger, Mondelez would have also gained control over the production and distribution of chocolates under the Cadbury brand as well as Nestle’s Kit Kat in the US. Hershey’s currently has the license for both and pays royalties to Mondelez and Nestle.