Mars Inc. Gobbles Up Kelloggs in $35.9 Billion Deal

Mars Inc., the family-owned company behind Snickers, Skittles, and M&M's, has announced its plans to acquire snack giant Kellanova for a mouth-watering $35.9 billion. According to Reuters, Mars will pay $83.50 per share in an all-cash deal, a 33% premium on Kellanova's stock price before takeover rumors emerged.

The deal includes Kellanova's popular brands such as Pringles, Eggo, Cheez-It, Club Crackers, and Pop-Tarts, which will now sit alongside Mars' existing portfolio.

"In welcoming Kellanova’s portfolio of growing global brands, we have a substantial opportunity to further develop a sustainable snacking business that is fit for the future. We will honor Kellanova's heritage and innovation while combining our strengths to bring more choice and innovation to consumers," said Poul Weihrauch, CEO of Mars.

The takeover is a response to the challenging market conditions currently faced by packaged food companies, as cash-strapped consumers opt for cheaper, private-label alternatives. This acquisition is a bid to increase scale and weather the storm of price inflation, and it is the biggest deal in the packaged food industry.

With limited overlap between the two companies' products, antitrust experts don't foresee significant roadblocks to the deal. Kellanova, which split from WK Kellogg last October, focuses on salty snacks and cereals outside of North America, while WK Kellogg retained the Kellogg name and the North American cereal business.

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Sources:

• Reuters
• Reuters - Snack Wars