The American food group Mars announced on Wednesday the acquisition of its competitor Kellanova (Pringles chips, Kellogg’s snacks) for 35.9 billion dollars, in order to create a giant with cumulative turnover of 63 billion dollars in 2023.
“By welcoming Kellanova’s growing portfolio of global brands, we have a huge opportunity for Mars to continue to build a sustainable business in the snacking industry,” said Poul Weihrauch, Mars CEO, in a statement.
The group is offering Kellanova shareholders $83.50 per share, paid in cash, a premium of approximately 44% over the average price of the last thirty days and 33% over the average price of the last year, as of August 2. That is before the Wall Street Journal did not mention this buyout project on August 5.
The chocolate bar giant plans to finance this operation through equity and debt issuance, which has already been organized, it said in the press release.
The transaction still requires the green light from Kellanova shareholders as well as regulatory approvals. It is expected to close in the first half of 2025.
In June 2021, breakfast giant Kellogg unveiled plans to split into three companies but ultimately settled on just two: WK Kellogg and Kellanova, which were born in October 2023.
The first one took over the major cereal brands (Rice Krispies, Corn Flakes, All-Bran, Froot Loops, Special K, etc.) while the second one got Kellogg’s brand snacks (Eggo, Nutrigrain, Rice Krispies Treats, etc.) as well as Pringles, Cheez-It and Carr’s.
These two independent companies are listed on the New York Stock Exchange, unlike Mars which is a family group.