1. Why was market share in the confectionery business an important factor in Mars’ decision to acquire Wrigley?
2. It what way did the acquisition of Wrigley represent a strategic blow to Cadbury?
3. How might the additional product and geographic diversity achieved by combining Mars and Wrigley benefit the combined firms?
4. Speculate as to the potential sources of synergy associated with the deal. Based on this speculation, what additional information would you want to know in order to determine the potential value of this synergy?
5. Given the terms of the agreement, Wrigley shareholders would own what percent of the combined companies? Explain your answer.

Under considerable profit pressure from escalating commodity prices and eroding market share, Wrigley Corporation, a U.S. based leader in gum and confectionery products, faced increasing competition from Cadbury Schweppes in the U.S. gum market. Wrigley had been losing market share to Cadbury since 2006. Mars Corporation, a privately owned candy company with annual global sales of $22 billion, sensed an opportunity to achieve sales, marketing, and distribution synergies by acquiring Wrigley Corporation.