Mondelez ends the pursuit of the Campbell & # 39; s Arnott biscuits brand

Mondelez's efforts to purchase Campbell Soup's iconic Arnott brand of Australian biscuits have come to an end, people familiar with the case told CNBC.

Both had been in a stalemate over the price, CNBC had previously reported. Mondelez had submitted a final offer for Campbell's international snacking activities, including Arnott's, below Campbell's price expectations of about $ 3 billion. In recent weeks, these discussions have officially ended, people said.

Evaluation was a key issue in the conflict, people said. Mondelez, which owns brands like Oreos, Belvita and Chips Ahoy, is looking to expand its portfolio of snacks as younger generations eat fast. He discusses transactions with caution, however.

"In Arnott's case, it's Australia, it's biscuits, it's a pretty big undertaking, that's the thought of that white space … It's probably a little bit higher than that that we would have originally started when we considered acquisitions, but at the same time we have very clear expectations in terms of returns and leverage, and we want to remain very disciplined buyers, "he said. Analysts Dirk Van de Put, General Manager of Mondelez, at the call of the first quarter results.

People who spoke with CNBC requested anonymity because the information is confidential. A spokesman for Campbell said the company was not commenting on rumors or speculation, while Mondelez declined to comment.

Other buyers of Campbell's international brands, including private equity firm KKR, remain in the running, some people said. Some of those who spoke with CNBC noted that these buyers would likely have fewer questions about antitrust laws than Mondelez, who is already in Australia, noted some of the people who spoke to CNBC.

KKR did not immediately respond to a request for comment.

Campbell's CEO, Mark Clouse, told badysts earlier Wednesday, when publishing the company's findings, that he "was evaluating multiple options with strategic and financial buyers" for business activities. Arnott.

The soup company on Wednesday raised its earnings forecast for the year and has made a profit above estimates, raising its shares to nearly 10%.

Last year, Campbell put on sale Arnott's and its fresh food brands in order to reduce its debt resulting from its $ 6.2 billion purchase of pretzel and chip company Snyder & ### 39; s-Lance, in order to develop its Pepperidge Farm snacking business.

Clouse said on Wednesday that the company "was progressing steadily" in integrating its US snacks business, with organics sales in the unit increasing by less than 25%.