Mergers, Acquisitions and Takeovers Case Study

Mars-Wrigley Merger: Changing Dynamics of Global Confectionery Industry

Abstract:
In 2008, Mars, the second largest confectioner acquired Wrigley, the largest chewing gum manufacturer in the world. With this deal Mars replaced Cadbury as a global market leader with over 14.4% market share. However, this merger stirred the competitive dynamics of the global confectionery industry. The fact that major shifts in the global rankings in the confectionery industry were largely driven by mergers and acquisitions, raised concerns over the sustainability of Mars' leadership in the industry. The analysts feel that Cadbury and Hershey might come together to respond to this merger. Given the scenario, gaining and sustaining a leadership position in the long run presented various challenges for Mars and Wrigley.

Pedagogical Objectives:

• To the dynamics of the global confectionery industry
• To the opportunities and challenges for Mars in growing through acquisitions.
• To the impact of consolidation trends on the competitive dynamics of the industry.

Keywords : Global confectionery industry, Wrigley, Mars, Cadbury, Hershey, Industry consolidation, Mergers and acquisitions, Diversification, Market leadership, Market share, Competition, Inorganic growth, Synergies, Product portfolio, Growth strategy

Contents : 
Global Confectionery: An Overview
Global Confectionery Industry
Mars-Wrigley: Impact on Global Confectionery Market
Global Confectionery Industry Sales in US
Global Gum Retail Value Sales – Growth by Category
The Product Portfolio of Wrigley in 2007