Major news in the confectionary world this week as details emerged of the takeover of the Wm. Wrigley Jr. Company by Mars Inc.
The merger, which could take six to twelve months to close, will see Mars paying $80 cash for each share of Wrigley stock in what amounts to a $23 billion deal.
The combined Mars and Wrigley will now overtake Cadbury as the world’s biggest confectionery company, with an estimated global market share of 14.4 per cent.
The deal is hopefully particularly good news for Wrigley, which has not been able to fully leverage its brands in the past and could profit from the size of Mars and its strength in innovation. Last year Wrigley conceded 3 points of gum share to Cadbury, thanks to growth in new products such as gum proposing dental benefits.
In a roundabout way, Cadbury probably also profits from this deal: its biggest rival bidder for Hershey is likely out of the picture for good. A new offer from Cadbury seems likely now that Wrigley (who came close to buying Hershey in 2002) is out of the way.
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