Filed under: Deals
The Oracle of Omaha and Mars, the massive privately-held chocolate company, will purchase gum concern Wrigley (NYSE:WWY) for $22 billion. The price is a 27% premium over where Wrigley traded in the last session.
On a per-share basis, Wrigley would be going for nearly $80. The company’s stock has not been that high, ever.
The deal is hard to fathom. Costs savings are not really evident. The Wall Street Jounal points out “A deal would expand Mars’s already considerable global reach. Wrigley generates the majority of its sales outside of the U.S.” But, each company appears to have adequate distribution networks in the US and abroad.
Read the rest at 24/7 Wall St.
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