Billionaire Buffett refuses to participate in the Mars and Wrigley
A well-known billionaire investor Uorren Baffet refused to participate in the two most famous brands of sweets and chewing gum in the US - Mars and Wrigley.
Mars Inc. buys 20% stake in Wrigley its subsidiary companies owned U.Baffetu to consolidate 100% of Wrigley, writes the Financial Times,
It is expected that this transaction will strengthen the Mars position in the global market of chocolates and sweets, the capacity of which is estimated at $ 177 billion. Now the combined share of Mars and Wrigley on this market is estimated at 13.5%, and together they occupy the first place. In the US, the share of companies higher - about 25%, according to Euromonitor data.
Company U.Baffeta Bershire Hathaway has acquired a minority stake in Wrigley for $ 2.1 billion in 2008, when it helped finance the Mars Wrigley takeover for $ 23 billion. Berkshire, received preferred shares, Mars has also provided a loan of $ 4.4 billion that has already been redeemed .
Traditional snacks recently hand over positions under pressure from manufacturers of healthier food, such as cereal bars or beef jerky. Nevertheless U.Baffet expressed satisfaction with the outcome of the seven-year relationship with the Mars and Wrigley.
Mars shares are not publicly traded and the company is usually shunned partnership with foreign investors.