Mars-Wrigley deal is a sweet one
Candy giant Mars has struck a deal to take over chewing gum maker Wrigley's in a $23 billion deal unveiled this morning. The deal is so sweet, Warren Buffet wants to invest after the deal is over. Janet Babin reports.
Snickers and Mars bars (Photo by Ian Waldie/Getty Images)
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Lisa Napoli: What's bigger than Mars? The union of the candy giant that brings you Snickers and M&Ms with Wrigley chewing gum. A $23 billion deal unveiled this morning that will change the candy landscape. And as Janet Babin reports, there's a modern Wonka behind this deal.
Janet Babin: Mars has agreed to pay Wrigley shareholders $80 a share. That's a 28 percent premium over last week's share price. Under the deal, the family-owned Mars company will take over 100 percent of Wrigley's shares. But the M&Ms will stay separate from the Juicy Fruit. Wrigley's remains a stand alone business after the merger. The deal is so delicious that Warren Buffett has his hand in the candy jar. Berkshire Hathaway will purchase a $2.1 billion minority equity interest in the Wrigley subsidiary once the deal's done.
Mars is the world's largest chocolate seller. Analysts say this new candy behemoth will put pressure on the rest of the industry to consolidate. The buyout's expected to take six months to a year to complete.
I'm Janet Babin for Marketplace.
