(Reuters) – 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.

Bloomberg reported earlier this week that Mondelez was exploring the acquisition of chocolate maker Hershey, in what could have created one of the world’s largest confectioners.

The Hershey Trust Company’s approval is key in any takeover deal, given its voting control of the chocolate maker.

Hershey and Mondelez did not immediately respond to Reuters’ requests for comment.

Earlier in the day, Mondelez said it would focus on “bolt-on” deals similar to the recent acquisitions of Chipita, Clif and Ricolino. It also announced a share buyback program of up to $9 billion.

Mondelez’s deals with Chipita, Clif and Ricolino in 2022 were all under $3 billion. In contrast, Hershey has a market capitalization of about $38 billion, according to LSEG data.

The Oreo maker tried acquiring Hershey in a $23 billion deal in 2016, but the overture was rejected by the trust.

Reuters had then reported that Hershey was not willing to enter into deal negotiations for an offer of less than $125 per share.

The Hershey Trust, set up by the company’s founder over a century ago, is a charitable organization that has as its sole beneficiary the Milton Hershey School.

Hershey shares, which surged as much as 19% on Monday following the report on Mondelez’s bid, were down 3.3% on Wednesday. Shares of Mondelez were up 3.5%.

(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Anil D’Silva)