Mars has announced a deal to acquire the Wm. Wrigley Jr. Co. for about $23 billion. Under the agreement, Wrigley will become a separate, stand-alone subsidiary of Mars. The deal has been approved by the boards of both companies. Among Wrigley's brands are Extra, Orbit and Eclipse gums as well as LifeSavers and Altoids. Mars has M&M's, Snickers, Starburst, Skittles and Twix. Mars also makes Uncle Ben's rice products and pet food under the Pedigree brand. While both Mars and Wrigley share a similar history in that they are both family-owned, the Wrigley Co. went public in 1923 and Mars remains a privately held company.
Could the creation of a confectionery giant lead to other mergers in the industry? Perhaps the pressure will spur Hershey and Cadbury Schweppes, who have long been in talks, to finally take the plunge? (Source: The New York Times)
