Mars is considering acquiring Kellanova, a maker of popular snacks, in a potentially large deal.

From Investing.com: 2024-08-04 15:20:36

Mars, known for iconic candy brands like M&M’s, is reportedly considering a major acquisition of Kellanova, maker of popular snacks like Cheez-It and Pringles. Kellanova’s $22 billion market value could make this one of the largest deals in the packaged food industry, testing U.S. regulators’ stance on consolidation.

Kellanova’s stock has risen 20% since being spun off from Kellogg last October, but still trades at a discount compared to competitors like Hershey and Mondelez. While Mars may be interested, there’s no guarantee of a deal. Market sources suggest other suitors may also eye Kellanova, or no agreement may be reached at all.

With the rise of price inflation and shift in consumer demand, companies in the packaged food sector are increasingly pursuing mergers to scale up. While U.S. regulators are wary of mega deals impacting consumers, smaller acquisitions have been more common lately. Kellanova specializes in snacks and convenience foods, made in 21 countries and sold in over 180.

Mars, a family-run business, produces snacks and pet food while also operating veterinary services and diagnostic businesses. Whether a deal with Kellanova materializes or not, the potential acquisition showcases the ongoing trend of consolidation in the food industry as companies navigate changing market dynamics.



Read more at Investing.com: Snickers maker Mars explores acquisition of Kellanova, sources say By Reuters