Mars Incorporated - proposed acquisition of The Wm. Wrigley Jr. Company
Type of assessment
Informal Review
Reference
31930
Acquirer(s)
Mars Incorporated
Target(s)
The Wm. Wrigley Jr. Company
Industry
Snack foods
Summary
On 28 April 2008, Mars Incorporated announced that it proposes to acquire the Wm. Wrigley Jr. Company.
Outcome of assessment
Not opposed
Total review days *
15
Commenced public review
23rd June 2008
Date completed
11th July 2008
Market definition
The ACCC considered the proposed acquisition in the context of separate national markets for the wholesale supply of gum, chocolate confectionery and sugar confectionery (including sugar-free hard candy).
Competition analysis
The ACCC considered that the proposed acquisition would result in little or no increase in concentration in any of the relevant markets. Evidence from the ACCC's market inquiries also indicated that the merged firm would be unable to profitably leverage its position in the supply of gum to boost sales of its chocolate and sugar confectionery products. The ACCC considered the threat of entry into the Australian market by an established supplier of gum in overseas markets was particularly relevant in this regard.
Review timeline
Date
Event
23rd June 2008
ACCC commenced review under the Merger Review Process Guidelines.
3rd July 2008
Closing date for submissions from interested parties.
11th July 2008
ACCC announced it would not oppose the proposed acquisition.
* Total Review days = Total business days less public holidays and time during which the review was suspended.
