CORRECTED - (OFFICIAL)-UPDATE 3-Mars, Buffett to buy Wrigley

(Mars corrects location of facility in paragraph 16)) (Adds deal details, background)

By Brad Dorfman

CHICAGO, April 28 (Reuters) - M&M's candy maker Mars Inc has teamed up with billionaire Warren Buffett to buy No. 1 chewing gum manufacturer Wm Wrigley Jr Co WWY.N for $23 billion, creating the world's largest confectionery company.

The deal could force Mars rival Hershey Co (HSY.N: Quote, Profile, Research) and Britain's Cadbury Schweppes Plc (CBRY.L: Quote, Profile, Research) into a deal of their own. The two companies are reported to have talked in the past.

The Wrigley deal, announced on Monday, will give Buffett's Berkshire Hathaway Inc (BRKa.N: Quote, Profile, Research) a minority stake in Wrigley, which will become a separate Mars subsidiary. Buffett's other food holdings include a stake in Kraft Foods Inc (KFT.N: Quote, Profile, Research).

Aside from Berkshire, financing for the deal is being provided by Goldman Sachs Group (GS.N: Quote, Profile, Research) and JPMorgan Chase & Co (JPM.N: Quote, Profile, Research), Mars said in a news release.

At $80 a share, the deal represents a 28 percent premium over Wrigley's closing stock price of $62.45 on Friday. Wrigley shares rose 23 percent on Monday.

"The combined entity would have significant scale and breadth in a very attractive segment of the global food industry," Andrew Wood, analyst at Sanford Bernstein, said in a research note ahead of the formal announcement of the deal.

The combined companies would have a major presence in chocolate, gum and candy.