July 29, 2008

EU Approves Proposed Acquisition of Wrigley By Mars

EU approves proposed acquisition of Wrigley by Mars

BRUSSELS, July 28 (Xinhua) -- The European Commission on Monday cleared the proposed acquisition of sole control of Wrigley by Mars, both U.S.-based confectionary companies.

The commission said its investigation has concluded that the proposed transaction would not significantly impede effective competition in the European Economic Area -- 27 European Union (EU) member states plus Iceland, Liechtenstein and Norway -- or any substantial part of it.

Mars is a U.S.-based family-owned company. It is active worldwide in confectionery, food and pet care products. Wrigley is a U.S.- based multinational company active worldwide in gum and sugar confectionery.

The commission, the executive body of the EU, found that there is no overlap in the two companies' core confectionary activities - - chocolate and gum. Although both parties are active in sugar confectionary, the limited market shares do not give rise to competition concerns.

The commission also concluded that there is no risk that the joint entity could use the strong market position Wrigley currently enjoys on the gum markets to gain an unfair advantage over their competitors.

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