CHICAGO, United States (AP):

Gum and candy maker Wrigley Jr Company said Tuesday it is moving into chocolate, announcing the acquisition of an 80 per cent stake in Russian premium-chocolate company A. Korkunov for US$300 million.

Wrigley said it will fund the purchase with available cash and a "modest" amount of debt and purchase the remaining 20 per cent interest in Korkunov over time.

The payment will be partially offset by about US$55 million in tax benefits.

The deal comes more than four years after the Wrigley company attempted to enter the chocolate market and failed with the rejection of its US$12.5 billion bid to buy Hershey Company, the maker of Hershey chocolate bars, Hershey's Kisses and Reese's peanut butter cups.

Korkunov is about one-fiftieth the size of Hershey with an estimated US$100 million in 2006 sales.

Bill Wrigley said the move "represents an important addition to our competencies and has the long-term potential to create value in marketplaces around the world."

The acquisition is subject to customary closing conditions, including certain regulatory clearances.