Shortly after the start of the new century, Wrigley, the largest chewing gum manufacturer in the world, bid $12 billion for Hershey, the chocolate company. Wrigley was unable to acquire Hershey, however since Wrigley did not produce any chocolate at the time of the takeover bid, what would this acquisition have been an example of?

Question

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This acquisition would have been an example of diversification, as Wrigley, a chewing gum manufacturer, was attempting to enter a new market (chocolate production) through the acquisition of Hershey.

Shortly After the Start of the New Century, Wrigley, the Largest