Buffet Completes a Sweet Merger

Mars is most known to many people as a very good brand of candy but it has just made an equally sweet move by buying up the chewing gum corporation Wrigleys. The Guardian traces the details of the merger and supplements with the fascinating background about the serendipity of the finding by the founders of the acquired firm that selling chewing gum was superior to the soap and baking soda. No surprise though that Warren Buffet of Berkshire Hathaway was involved in the deal and it is to his credit that he is commended by Wrigley's owners as the guy whose cheque was considered truly good.

I am however surprised that the deal cost $ 23 billion at the total cost of the deal. However, while I am a cautious observer large business mergers, I think that this one stands a high chance of being all sweet and chewy for the shareholders.As warren Buffet states, the balance sheet of the acquired firm is far more straightforward and easier to understand than that of many an investment bank. That says a lot and confirms Warren Buffet's keen eye for good businesses.