Buffett’s Big Bag of Cash scoops up the checkout naughty stuff
Berkshire Hathaway and Mars have put together a US$22b deal to acquire Wrigley - yet another example of Warren Buffett’s adage that “the best place to be when the market falls off a cliff is waiting at the bottom with a big bag of cash“. Imagine the market power - effectively owning nearly every bit of space occupied by all that naughty stuff next to the supermarket checkout (which all kids learn is a good place to cause a scene). Cadbury and Hershey will have to move fast to counter this.
I assume (details were unclear when I wrote this) that Mars is the active partner - with BH taking a stake - meaning Mars can integrate and rationalise sales, distribution, merchandising and IT. Sounds like a smart move, and Buffett has a track record of paying good prices (good for buyer and seller) for good businesses.
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April 29th, 2008 at 7:31 am
[…] deal - is Buffet going to Mars? Published April 29, 2008 Business , Investing As Jim mentions, Buffet’s Berkshire Hathaway is involved in a $23bn deal where Mars is buying Wrigley. Mars […]