Mars to Acquire Kellanova for $36 Billion

Mars Inc. is set to acquire Kellanova, the maker of popular snacks like Cheez-Its and Pop-Tarts, for approximately $36 billion, significantly expanding its portfolio in the snacking sector. The deal, which includes a payment of $83.50 per share in cash, follows Kellanova's separation from Kellogg Co. last year and reflects Mars' strategy to diversify beyond its traditional chocolate offerings. With Kellanova's net sales surpassing $13 billion and a workforce of around 23,000, analysts believe this acquisition will enhance Mars' ability to innovate and penetrate new markets. The transaction is anticipated to close in the first half of 2025 and is not expected to face substantial antitrust hurdles due to limited product overlap. The buyout is noted as one of the largest in the packaged food industry to date, overshadowing previous acquisitions such as Mars' $23 billion takeover of Wrigley. This merger comes amidst challenges in the packaged food sector, where companies are grappling with declining sales growth as consumers shift towards cheaper alternatives.