- Mars acquires Kellanova in one of the largest deals in food history.
- Kellanov's market value is approximately $27 billion (€24.84 billion).
Reuters writes that the acquisition of Kellanova by Mars would be one of the largest in the history of the food sector. The market value of Kellanova, which is based in Battle Creek, Michigan, in the US, is about $20 billion ($27 billion including debt). The potential acquisition is a test for market regulators, who will check to what extent such a transaction will not distort competition on the market.
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Kellanova targeted for takeover
Mars will pay $83.50 per share for Kellanova, representing a roughly 33% premium to the company’s closing price on Aug. 2, when Reuters first reported that Mars was exploring a deal with the Pringles maker.
Kellanova shares rose about 8 percent to $80.45 before the open. Kellanova is valued at $28.58 billion based on equity, according to Reuters calculations.
Mega-merger time
The industry has been reporting a good time for big mergers. Last year, JM Smucker acquired Hostess Brands’ Twinkies for $5.6 billion (€5.15 billion), a deal that combined two major U.S. snack makers. But many of the deals were smaller than the mega-merger between Heinz and Kraft nearly a decade ago. U.S. antitrust regulators have grown wary of such deals, which would result in higher prices and fewer choices for consumers.
Once the transaction is completed, which is expected to occur in the first half of 2025, Kellanova will become part of Mars Snacking, led by global president Andrew Clarke, the companies said.
Kellanova and Mars are market giants
Kellanova is an American corporation that produces snacks, cereals, and chips, among other things. Its most famous brand is Kellogg's cereal.
The Mars Group produces, among others, Mars, Snickers, Milky Way, Bounty, Twix bars, M&M's and Skittles dragees, as well as Orbit and Winterfresh chewing gum.
