• The Wall Street Journal, Monday, April 28, 2008 10:16 AM

In a deal that will unite two icons of the U.S. candy business, Mars is acquiring Wm. Wrigley Jr. Co. for $80 a share-or about $23 billion--with financial backing from Warren Buffett's Berkshire Hathaway. Mars says Wrigley will become a separate, stand-alone subsidiary, with Berkshire holding a minority stake. Goldman Sachs Group and J.P. Morgan Chase are also providing funding.

The deal will expand Mars's already considerable global reach. Wrigley generates the majority of its sales outside of the U.S. In recent years, it has expanded its offerings well beyond chewing gum. Mars is the world's largest maker of chocolate by sales, with a market share of 15%.

The deal could spark further consolidation in the global candy business. Hershey and Cadbury Schweppes, for example, could be forced to merge. The two discussed a deal last year, but talks fell apart. Cadbury in May will split off its beverage unit, which includes Dr Pepper and 7Up, potentially paving the way for a deal. Hershey has been hurt in recent years by competition from Mars.

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