Mars poised for $22bn Wrigley takeover

Chocolate giant Mars is poised to announce a US$22bn (€14m) bid to buy the Wrigley chewing gum group, it was reported today.

The deal, which could be unveiled later today, is reportedly being financed by billionaire US investor Warren Buffett.

It would see two of America's largest confectionery groups come together, uniting the maker of M&Ms and Snickers with Wrigley's Extra and Orbit empire.

It is thought a merger between Mars and Wrigley could spark off a wave of consolidation in the industry as confectionery firms seek to increase their size and global reach.

A deal between Mars and Wrigley would boost the capability of both firms, in particular giving Mars a bigger international presence.

Wrigley has been under pressure in recent months as rival Cadbury Schweppes has stepped up its assault on the chewing gum market, with a recent worldwide marketing blitz for its Trident brand.

Cadbury claimed earlier this year that it was winning the chewing gum war after revealing that Trident was now a bigger brand than its famous Dairy Milk chocolate, seeing a 26% surge in sales last year.

Mars declined to comment today, but is understood to be tying up with Mr Buffett for the deal, with the legendary investor then taking on a stake in the group.

Mr Buffett already has interests in the confectionery sector with a stake in See's Candies in the US and having been an early investor in Coca-Cola.

Wm Wrigley, which was unavailable for comment, was founded 117 years ago.

The group now has a range of products sold in 180 countries, with strong business outside the US reportedly helping offset a tougher domestic market.

Wrigley's has a strong history in the UK despite its American roots, first launching its Spearmint gum in the UK in 1911.

It built a UK factory in Wembley, north London, in 1927, later relocating the plant and its head office to Plymouth, where more than 600 people are now employed.

Around 25% of chewing gum produced in Plymouth is exported overseas.

Mars is also headquartered in the US, but has a large operation in the UK, with manufacturing plants in locations including Slough in Berkshire, King's Lynn in Norfolk and Basingstoke.