Mondelez International announced that its board of directors has approved an increase of $1.7 billion in the company's current share repurchase program. The company is now authorized to repurchase up to $7.7 billion of Mondelez International Class A Common Stock through 2016, up from the previous authorization of $6 billion. In addition, the company has entered into an accelerated share repurchase (ASR) agreement to purchase $1.7 billion of the company's common stock.
"These actions are consistent with our ongoing commitment to return capital to our shareholders," said chairman and CEO Irene Rosenfeld, in a prepared statement. "Following the resolution of the Starbucks arbitration, we said we would use the net proceeds of the award to buy back shares. This ASR transaction enables us to do that in a quick and cost-effective manner."
Upon completion of the ASR, which is expected no later than the second quarter 2014, the company will have returned at least $4 billion to shareholders in the form of dividends and share repurchases since its launch as a new company in October 2012. After giving effect to the ASR transaction, the company will have $4.8 billion remaining under its existing share repurchase authorization.