April 28, 2008
Mars (With A Hand from Warren Buffett) Set to Buy Wrigley's
Talk about your major deals. Mars, Inc. is set to buy the Wm. Wrigley Corporation for $22 billion. The deal is being fueled by some serious seed money from Warren Buffett's Berkshire Hathaway.
The deal, which isn't inked yet, would signal a serious sea change in the snack food and candy market as prices for both sugar and milk are on the rise. It could also spur further consolidation within the confectionery industry, as Hershey and Cadbury Schweppes have been looking to marry each other for years. The near-Mars/Wrigley deal would also put the publicly traded Wrigley's under the control of the privately-owned Mars.
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22 BILLION DOLLARS.
That is insane.
Sure, $22B is a bit much, espcially at the 20% premium over the current Wrigely stock price. However, Microsoft still wants to acquire Yahoo for $44B -- that's FORTY-FOUR (44) BILLION, or twice as much as the Wrigley acquisition.
I ask you, which is more insane? The purchase of company that has been in business since the late 1800s, and actually makes a product(s)? Or, the purchase of a dot com, albeit a very prominent one, that survives primarily on advertising and endorsement revenue?
How are you, Mr. Matty?
Does that mean it'll be called Mars Field?
Um, no. The Tribune Co owns Wrigley Field and it will soon be re-named "Sam Zell Memorial Stadium" in anticipation of current owner's eventual death.
Hello FRP. Doing well. Just preparing a 26 Billion dollar proposal for Wrigley - just to stir things up a bit.
i read it too fast ... i'm like ... when the hell did mars get in on the bidding? i hope no one decides to make chocolate gum. although, i'm sure someone's going to tell me it's already been done.
Smussy, I seem to remember having chocolate gum as a kid. I don't have time (read: too lazy) to look for it, but I remember it wasn't very good.
Matty,
Ive got a few dollars laying around if you get into a bidding war with that Buffett dude.