- Mars has acquired the remaining stake in its Wrigley candy subsidiary, which Berkshire Hathaway previously owned, the Chicago Tribune reported.
- Mars will combine Wrigley with its own chocolate business to form Mars Wrigley Confectionery and will locate the combined division's headquarters in Chicago.
- A Wrigley company spokesperson told the Chicago Tribune that she doesn't expect the number of employees at either company to change significantly. Wrigley has just short of 300 employees at its Chicago headquarters, while Mars employs about 1,700 workers in the Chicago area.
Mars is already the global leader in the confectionery industry, so this acquisition only further expands an already sprawling empire.
In addition to growth opportunities, the full takeover also makes good business sense.
Because Mars already owned such a significant stake in Wrigley, this deal isn't likely to change the makeup of the chocolate industry too much. It could, however, have a noticeable impact on Mars and Wrigley's operations and R&D efforts.
Having both companies under one roof could inspire or facilitate innovation that Mars has the scale and capability to roll out nationwide or globally. That's compared to startups that may innovate and bring new concepts to market quickly but can't always carry out massive launches or have the economy of scale to achieve the same profitability that a larger company like Mars can.