Mars buys out Buffett share in Wrigley, creates new Chicago-based business

Mars Inc. is buying out Warren Buffett's $2.1 billion preferred stake in its Wrigley chewing gum business and will create a combined candy and gum division that will be based in Chicago.

McLean, Virginia-based Mars said the new Mars Wrigley Confectionery business would oversee some of the company's most iconic brands, including Snickers, M&M's, Dove and Twix chocolates, as well as Doublemint, Extra and Orbit gum, Altoids and Lifesaver mints and Skittles and Starburst confections.

Martin Radvan, the global president of Wrigley and a 30-year veteran of Mars, will lead the new division and a group of 30,000 employees operating in about 70 countries, according to a company statement.

"Mars Wrigley Confectionery brings together two great businesses, strengthening our ability to create win-win relationships with our customers, and improving our opportunities to address dynamic retail and consumer trends together," Radvan said.

Buffett helped Mars buy Chicago-based Wrigley Co. in 2008 and got the preferred securities along with $4.4 billion in bonds paying 11.45 percent a year. Mars retired that debt in 2013.

Mars, the largest candy company in the U.S., said that retiring the Buffett investment helps it combine its chocolate and gum units.

"We are grateful for the strong and productive partnership we have with Warren Buffett," Mars CEO Grant Reid said in the statement. "Sole ownership of Wrigley provides us with an opportunity to rethink how we simplify our chocolate and Wrigley businesses."

Wrigley already had its base in Chicago, and a Mars Inc. spokesman said Thursday the new business would remain at that location.

• Bloomberg News contributed to this report.