Toy giant Mattel has allegedly turned down competitor Hasbro’s bid, according to press agency Reuters’ anonymous sources close to the deal. It is still unclear what the repercussions would be.
Third time’s not the charm (yet)
For now, it seems like the third attempt will not be the successful attempt for Hasbro. After failed acquisition attempts in 1996 and 2006, the manufacturer (which owns brands like Monopoly, G.I. Joe and Transformers) tried once more to acquire the Barbie, Hot Wheels and Matchbox owner last week.
According to Reuters, Mattel informed Hasbro that its bid was too low and that the competitor does not take into account how the Bureau of Competition might react. If it did approve the deal, it will undoubtedly attach very strict conditions, which may even include a forced sale of a part of its toy portfolio.
The financial press agency says it is unclear whether this rejection will halt the negotiations between America’s two largest toy manufacturers even before they have really started. It could also be Margaret Georgiadis’ attempt to playing “hard to get” and raise the sum she and her company could get from Hasbro. Margaret Georgiadis has been Mattel’s CEO since February 2017.