Mars to buy Wrigleys

Privately-owned confectionery company Mars has launched a $23bn takeover proposal for US chewing gum company Wrigleys. If the deal is approved by Wrigleys shareholders it will create a combined company with annual sales of over $27.4bn.

 

As part of the deal, responsibility for Mars’ sugar confectionery portfolio, including Starburst and Skittles, will be transferred to Wrigleys, which boasts several leading chewing gum brands including Spearmint Gum, Juicy Fruit and Orbit.

 

Wrigleys chairman Bill Wrigley—who will retain his position if the deal goes through—said: "This is a great transaction at a great price. We see this as a historic opportunity to preserve what is special about Wrigley in terms of value and culture while continuing to grow and develop and invest in our brands.”

 

Mars president Paul Michaels said the two companies shared “common values and ways of doing business”, and said that the acquisition would create the best as well as the biggest confectionery supplier.

 

Famous investor Warren Buffett will take a minority stake in Wrigleys after the deal, which is expected to take up to a year to be completed.

 

Mars brands include M&Ms, Mars and Celebrations.