- Mars is considering acquiring Kellanova. The transaction would be one of the largest in the history of the food sector.
- Kellanova's market value is approximately $27 billion (€24.84 billion).
Reuters writes that the takeover 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, USA, is approximately USD 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 for takeover
Kellanova's shares have risen about 20% since separating from WK Kellogg Co last October, but are still trading at a discount to some of its competitors such as Mondelez International, making it a potential takeover target.
However, there is no certainty that Kellanova will pursue a deal with Mars, sources said. Another competitor may also approach Kellanova, and it is possible that no agreement 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 reports that it is a good time for large mergers. Last year, JM Smucker acquired Twinkies Hostess Brands for $5.6 billion (€5.15 billion). This deal brought together two major U.S. snack manufacturers. But many of the deals were smaller than the Heinz-Kraft mega-merger struck nearly a decade ago. U.S. antitrust regulators have become concerned about such deals, which would result in higher prices and fewer choices for consumers.
Last week, Kellanova reported financial results that were better than expected. This gave the company the opportunity to increase its forecast for the full year.
Kellanova and Mars are market giants
Kellanova is an American corporation that produces, among others, snacks, cereals or chips. Its best-known brand is Kellogg's cereal.
The Mars concern produces, among others: Mars, Snickers, Milky Way, Bounty, Twix bars, M&M's and Skittles dragees, and Orbit and Winterfresh chewing gums.
