- Mars is considering acquiring Kellanova, a deal that would be one of the largest 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
Kellanova's shares have risen about 20% since splitting from WK Kellogg Co in October last year, but they still trade at a discount to some of their peers, such as Mondelez International, making it a potential takeover target.
But there’s no guarantee Kellanova will pursue a deal with Mars, the sources said. Another suitor could also approach Kellanova, or it’s possible that no deal will be reached with either party, the sources added, requesting anonymity.
Kellanova and Mars declined to comment on the matter.
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.
Kellanova last week reported better-than-expected financial results, giving the company the ability to raise its full-year guidance.
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.
