Details emerged Monday of the $23bn takeover by Mars of chewing gum giant Wrigley, financed partly by Warren Buffett’s Berkshire Hathaway. In a deal similar to an LBO, privately-owned Mars will provide $11bn in equity and Buffett $4.4bn in subordinated debt. Goldman Sachs, which advised Wrigley, will supply $5.7bn in senior debt. The new group will supersede Cadbury Schweppes as the biggest confectionery company, with global market share of 14.4%. Lex foresees an overdue wave of consolidation, saying Mars’ move – after Campbell’s recent sale of Godiva – may drive talks between Nestlé, Kraft, Hershey, Cadbury and smaller Lindt - among others.
