Candy maker Mars agreed to acquire the U$.$K$.$s largest independent chocolate maker Hotel Chocolat for $$661$ million. Mars is a privately$-$owned U$.$S$.$ candy maker that wants to boost sales outside of the U$.$S$.$ and Britain. Mars paid a $170\%$ premium over Hotel Chocolat$$s closing price the day prior to the deal announcement.

Hotel Chocolat was founded $30$ years ago and opened its first retail outlet in London about $20$ years ago. The chain now boasts $131$ stores in the United Kingdom and numerous restaurants. Other assets include retail shops in Japan and a luxury hotel in the Caribbean. Despite the rapid growth recent sales were down by $10\%$ and the firm reported a loss of $$7\mathrm{.}7$ million in the past year.

Brits took to social media to criticize the deal. Many expressed concerns over quality and referenced a past Kraft acquisition of British candy maker Cadbury. Mars has been operating in the U$.$K$.$ since $1932$ and employs about $10,000$ U$.$K$.$ workers to make the iconic Mars bar, Snickers, M&Ms$,$ and numerous other rbands

Thinking Critically Questions:

Why would Mars buy a company that is losing money? What are synergies?