The deal, which would create a confectionary giant, could be announced as early as Monday, reports in the New York Times and Wall Street Journal said, citing sources close to the matter.
NEW YORK (Reuters) - M&M's maker Mars Inc and Berkshire Hathaway Inc <BRKa.N> were near a deal to buy Wm Wrigley Jr Co <WWY.N>, the largest U.S. chewing gum maker, for over $22 billion, according to media reports early on Monday.
The deal, which would create a confectionary giant, could be announced as early as Monday, reports in the New York Times and Wall Street Journal said, citing sources close to the matter.
Under one possible scenario, billionaire investor Warren Buffett's Berkshire would likely provide financing to Mars and take a stake in Wrigley, the Journal wrote, quoting people close to the deal.
While the offer is for more than $22 billion, Wrigley has a market capitalization value of roughly $17.1 billion, according to Reuters Estimates.
!ADVERTISEMENT!Wrigley has brands such as Altoids, Extra and Eclipse, while its potential owner, Mars, is known for its M&M's, Snickers, Starburst and Twix brands.
The possible union of Mars and Wrigley could mean a renewed push toward consolidation in the global candy business.
One potential deal that has been discussed previously, and could invite fresh interest, is that between London-based Cadbury Schweppes <CBRY.L>, known for its Dairy Milk chocolate, and Trident gum brands, and top U.S. chocolate maker Hershey Co <HSY.N>.
A deal between Cadbury and Hershey could make strategic sense for both companies -- while Cadbury, the world's biggest confectionery group, seeks presence in the U.S. chocolate market and can capitalize on Hershey's strength, a deal with Cadbury could aid Hershey in its endeavors to expand overseas.
But some analysts have pointed to Hershey's trust as being a potential obstacle to any such deal.
The trust had pushed Hershey to put itself up for sale in 2002, but pulled back in the face of intense public pressure from community groups and elected officials.
Back then, Wrigley had made a $12.5 billion bid for Hershey, in an effort to combine its No. 1 position in U.S. gum with Hershey's top spot in U.S. chocolate and candy, but talks fell apart in final stages.
Another bid for Hershey had come from Nestle <NESN.VX> and Cadbury together, but was rejected as too low.
Mars, Berkshire and Wrigley representatives were not immediately available for comment.
(Reporting by Aarthi Sivaraman; Editing by Quentin Bryar)
