Mars acquires Wrigley with help from Warren Buffett
Mars has agreed to acquire Wm Wrigley Jr Co for $23 billion, with some help from Warren Buffett. The Wrigley stock shot up 23.15% on the NYSE, closing at $76.91 after Mars said it would pay $80 for each Wrigley share. Mars remains a family owned company. The Mars-Wrigley merger creates a combo that will take on Hershey and Cadbury Schweppes.
According to Warren Buffett,
“There’s really nothing that can go wrong with something like the Wrigley and Mars brands. People are eating more and more of their products every day.”
As fas as the funding for the acquisition is concerned, Mars is pumping in $11 billion, Buffett’s Berkshire Hathaway $4.4 billion and Goldman Sachs $5.7 billion. Berkshire will also buy a $2.1 billion stake in the Wrigley unit once the purchase is completed.
This deal also helps Warren Buffett get closer to Mars, should the family ever decide to sell.
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