Mars, Inc has announced that it is set to take full control of Wrigley by buying out the minority stake held by Warren Buffett’s Berkshire Hathaway fund. It did not say how much it is paying for the stake.
Buffett picked up the stake while helping organise Mars’ $23bn acquisition of Wrigley in 2008. That stake was up for potential repurchase, with Mars holding the option to buy half of the stake now and the remaining half in 2021. Mars said it instead choose to speed up the acquisition, noting that the move “provides us with an opportunity to rethink how we simplify our chocolate and Wrigley businesses so that we can bring a more holistic approach to this vibrant category.”
Wrigley will now become a fully integrated part of Mars, with the transition being phased in 2017. The new Mars Wrigley Confectionery will have its global hub in Chicago, Illinois.