`Perfetti' match for Van Melle.

Italian gum and sweets giant Perfetti S.p.A. will merge with its close, 20-year strategic partner Dutch partner, Van Melle, upon acquiring all remaining shares of the company. Perfetti's offer of 55 euros in cash for all outstanding Van Melle shares -- it currently has a 37% stake in the company

The move creates the sixth largest sweets and chewing gum company in the world and second in Europe by placing such brands as Menthos, Day Gum Protex, Brooklyn, Bib Babol, Alpenliebe and Airheads under one house. Sales for the newly formed company, dubbed Perfetti Van Melle, will exceed $1.2 billion euros ($1.24 billion).

"This merger represents a fundamental step in the development of Perfetti, building on our long-standing relationship with Van Melle and creating a leading confectionery group with a truly global platform," says Augusto Perfetti, chairman of the new company.

Izaak van Melle, president of Van Melle, notes that the merger will enable the company to "accelerate our global ambitions. It is by far our best option to become a leading player in the global confectionery market, whilst maintaining the unique characteristics of Van Melle." As a result of the deal, he expects Perfetti Van Melle to grow into the fifth largest candy company within the next five years.

The new billion-dollar confectionery giant will retain executive offices at both current headquarters, one in Lainate, Italy, and the other in Breda, Netherlands. Officers from both Perfetti and Van Melle will comprise the executive committee, which will be headed by Augusto Perfetti, chairman of the new company.

Not only does Perfetti Van Melle plan to expand its presence in existing markets such as the United States, the United Kingdom, Germany and France, but it looks to accelerate growth in the emerging markets of India, China, Indonesia and several other Southeastern Asian countries.