Mars, the family-owned candy giant, is set to acquire Kellanova, the maker of Cheez-It, in a monumental $36 billion deal. This acquisition will bring together iconic brands like M&M’s, Snickers, Pringles, and Pop-Tarts, marking the largest deal in the packaged food industry this year.
Mars announced that it will pay $83.50 per share for Kellanova, a 33% premium over its closing price before the deal was reported. The acquisition is a strategic move to capitalize on consumers’ continued preference for branded snacks, despite the challenges posed by inflation.
Mars CEO Poul Weihrauch stated that the combined company plans to hold prices steady and not pass on costs from the deal to consumers. This approach comes as food prices in the U.S. have surged by about 25% from 2019 to 2023, significantly impacting consumers.
The acquisition will expand Mars’ presence in the global snacking market, with plans to invest locally and introduce more healthy options. While Kellanova has faced competition from private label brands, particularly in Europe, the deal provides Mars with opportunities to grow in regions like Africa and China.
Legal experts do not anticipate significant antitrust hurdles, as the two companies have limited overlap in their offerings. The deal, expected to close in the first half of 2025, will see Kellanova become part of Mars Snacking, led by Global President Andrew Clarke. Kellanova CEO Steve Cahillane will leave the company once the deal is finalized.