Candy Consolidation- Mars/Buffett to buy Wrigley for 22 Billion

Mars Inc. and Warren Buffett's Berkshire Hathaway Inc., were close to a deal to acquire the Wm. Wrigley Jr. Company for more than $22 billion, according to media reports, a takeover with the potential to transform the confectionary industry worldwide.

The buyout could be announced as early as Monday, The New York Times and The Wall Street Journal reported.

Wrigley shares soared 26.5 percent, or $16.55, to $79 in premarket trading.

The Times' sources cautioned that the deal could still fall apart. Neither newspaper identified the people providing the information.

Mars and Wrigley had no immediate comment. Calls to Berkshire Hathaway were not immediately returned.

The merger of Mars, maker of M&Ms, Snickers bars and other candy, and Wrigley, which produces such gums as Extra, Eclipse, and Orbit, could hasten a market consolidation.

All major chocolate makers have been questioned recently about price fixing, both in the U.S. and in Europe.

Buffett, who already owns Sees Candies, is helping Mars finance the transaction, the newspapers said.

Representatives of the companies and Berkshire Hathaway declined to comment.

Buffett has a history of investments in iconic brands.

The sale price would represent a sizable premium above Wrigley's stock market value, which was about $17.3 billion Friday.

Wrigley, based in Chicago, sells candy in nearly 200 countries. Founded in 1891, the company has been led by four generations of the Wrigley family.

The company is scheduled to release first-quarter earnings results Monday.

Mars is a family owned company based in McLean, Va., and has global sales of about $22 billion each year. It was founded in 1911.

It is already the world's largest chocolate seller and an acquisition of Wrigley could put more pressure on other major players, such as Switzerland's Nestle, Britain's Cadbury Schweppes, and Hershey Co., of Pennsylvania, to consolidate.