Who'll kiss Hershey now Wrigley and Mars have agreed to merge?

As a result its merger with Mars, Wrigley will become a private company and part of one of the world's premier family owned companies. The combined organisation will have a product portfolio containing some of the world's most recognisable confectionery brands —- including Orbit, Extra, Doublemint, M&M's, Snickers and Mars — as well as leading food, beverage and pet care brands, totalling over $27 billion in global sales.

Mars, Incorporated has agreed to pay $80 cash for each share of Common Stock and Class B Common Stock of the Wrigley Company in a transaction valued at approximately $23 billion. The terms of the transaction have been unanimously approved by the Wrigley board of directors.

Mars will acquire 100% of Wrigley's outstanding shares and all of its outstanding options will be cashed out. The Wrigley Company will operate as a separate, standalone subsidiary, keeping its headquarters in Chicago and continuing its civic and philanthropic involvement, both locally and in its communities around the world. Additionally, Bill Wrigley, Jr will continue serving as the company's executive chairman. As part of the transaction, Mars' non-chocolate sugar brands — including Starburst and Skittles — will be added to Wrigley's confectionery portfolio, joining such well-known brands as Lifesavers and Altoids.

This merger may be good news for Cadbury as it removes Wrigley as a rival bidder for Hershey. Wrigley came close to purchasing Hershey in 2002 and rumours of a sale resurfaced in 2005 and into 2006. Now, as any combination of Hershey and Mars would face almost certain rejection on antitrust grounds, the field is open for Cadbury to acquire Hershey at a price that reflects the lack of competitors for the bid.