CHICAGO and HERSHEY, Pa. — The Hershey Co. 's main controlling owner, Hershey Trust Co., rejected Mondelēz International Inc. 's preliminary takeover offer, assessing the bid as too low, according to people familiar with the matter.

The main owner of US chocolate maker Hershey Co. has rejected a preliminary takeover offer from Mondelez International Inc., people familiar with the matter said, potentially ending a fresh pursuit that would’ve created a food giant with combined sales of almost $50 billion.

Hershey's main controlling owner has rejected Mondelez International's preliminary takeover offer, terming it as too low, Bloomberg News reported on Wednesday, citing people familiar with the matter.

Mondelez International Inc.’s latest overture for Hershey Co. underscores the challenges posed by sky-high cocoa prices and penny-pinching consumers.