What Is the Hershey Trust and Why Can It Block Takeover Deals?

Hershey Trust Co. is a rarity in corporate America. It owns almost all of Hershey Co.’s Class B stock, giving it roughly 80% of the voting power of the company. That clout was apparent this week when it rebuffed a takeover attempt by Mondelez International Inc. that would have been the year’s biggest merger agreement. The trust has scuttled several potential acquisitions of the chocolate maker over the years, including a previous one by Mondelez in 2016.

The trust was set up by Hershey’s founder, Milton Hershey, in 1905, according to the trust’s website. It supports other entities that serve a handful of causes, including a private boarding school for lower-income children that was founded by Milton and his wife and a nonprofit group that operates institutions including a botanical garden and a theater.