MCLEAN, Va. & CHICAGO -- Mars Inc. today announced a merger agreement with Wm. Wrigley Jr. Co. in a transaction valued at approximately $23 billion. Under the terms of the agreement, Wrigley will become a separate, standalone subsidiary of Mars. With $5.4 billion in sales, Wrigley is a world leader in gum and confections.

Financing for the transaction will be provided by Berkshire Hathaway, Goldman Sachs and JPMorgan. At closing, Berkshire Hathaway will make a minority equity investment in the Wrigley subsidiary.

The transaction builds the Mars business by strengthening and diversifying its confectionery business, and enhancing its potential for growth in the chocolate, nonchocolate confectionery and gum categories. To provide more focus to McLean, Va.-based Mars’ brands and drive growth, the company will be transferring its global nonchocolate confectionery sugar brands, including Starburst and Skittles, to Wrigley. Following completion of the transaction, Bill Wrigley Jr. will remain executive chairman of Chicago-based Wrigley, reporting to Paul S. Michaels. He will work closely with Bill Perez, president and CEO, and the current Wrigley management team.

The transaction is fully underwritten and not subject to financing conditions. The transaction is subject to customary closing conditions, including approval by Wrigley stockholders and certain governmental and agency regulatory clearances. Both parties hope to close the transaction within six to 12 months.

Meanwhile, First Data Corp., an electronic commerce and payment processing services company, today announced that it has reached an agreement to acquire InComm, a marketer, distributor and technology innovator of stored value gift and prepaid products.

Specific terms and conditions of the agreement were not disclosed. The acquisition is subject to customary closing conditions and regulatory approvals and is expected to be completed in the second quarter of this year.

With more than $300 million in 2007 net revenues and almost $8 billion in retail sales transactions processed in 2007, Atlanta-based InComm is one of the Unite States' largest distributors of gift cards, prepaid wireless products, reloadable debit cards, digital music downloads, content, games, software and bill payment solutions.

With operations in 37 countries, Denver-based First Data serves more than 5.4 million merchant locations, over 2,000 card issuers and their customers.

Watch for details in tomorrow's CSP Daily News.