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Mars set to pocket Wrigley's gum | Mars set to pocket Wrigley's gum |
(20 minutes later) | |
Confectionery giant Mars is set to buy US firm Wrigley's, best known for its chewing gum, for $23bn (£11.5bn). | |
The takeover proposal, in which Mars is offering Wrigley's investors $80 a share, is one of the largest global deals of recent years. | The takeover proposal, in which Mars is offering Wrigley's investors $80 a share, is one of the largest global deals of recent years. |
Renowned investor Warren Buffett will take a minority share in Wrigley's once the deal is completed, which is expected to take up to a year. | |
Mars is best known for its chocolate brands including Snickers and M&Ms. | Mars is best known for its chocolate brands including Snickers and M&Ms. |
No sticking points | |
Since being founded in 1891, Wrigley's has been run by family members and current boss Bill Wrigley will remain as chairman following the deal. | |
Its principal brands include Spearmint Gum and Orbit. | |
We see this as a historic opportunity to preserve what is special about Wrigley in terms of value and culture Bill Wrigley, Wrigley's chairman | |
Combined, the Wrigley's and Mars businesses will have annual sales of more than $27bn. | |
Wrigley's board has backed the deal, which must be approved by shareholders of both multinational businesses. | |
"This is a great transaction at a great price," Mr Wrigley said. | |
"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." | |
As part of the deal, Warren Buffett's Berkshire Hathaway will purchase a minority stake in Wrigley's worth $2.1bn. | |
"I have been a big fan of Wrigley's business model for many years and I love their products," Mr Buffett - known as the Sage of Omaha for his shrewd investment record - said. |