Mars buys out Warren Buffettâ€™s stake in Wrigley
Mars Incorporated has announced buying out Warren Buffett's stake in Wrigley chewing gum business. After the deal, M&Ms, Snickers, Starburst fruit chews, Doublemint, Mars and Extra gum will be under one business unit. The terms of the deal have not been disclosed but as per insider reports, Berkshire Hathaway is making a good profit with the deal.
Berkshire Hathaway acquired preferred stock with $2.1 billion and bonds worth $4.4 billion in Wrigley deal in 2008. The bonds were repurchased in 2013.
Talking about the deal, Buffett said in a statement, "I have enjoyed all of Berkshire's experiences with the Mars family and management and wish them the very best. Both Mars and Berkshire have profited from our investment and that's the way it should be."
Mars Chief Executive Grant Reid added that the relationship between Mars and Berkshire has been productive. The complete ownership of Wrigley will offer them the opportunity to improve and simplify product line.
The combined entity will have 30,000 employees.