Mars Acquires Kellanova for 35 Billion Dollars
Emilia Fedasz
Staff Writer
On Wednesday, August 14, 2024, Mars, Incorporated and Kellanova, made an announcement that both parties have entered into a “definitive agreement” where Mars will acquire Kellanova for 35.9 billion, or about $83.5 per share.
Kellanova, formerly known as Kellog, is publicly traded on the New York Stock Exchange under the ticker symbol, “K”. Kellanova owns many popular snack brands such as Pringles®, Cheez-It®, and Rice Krispies Treat® to name a few, and had over $13 billion dollars in net sales in 2023.
Mars Inc. has been privately owned by the Mars family since the company was founded in 1911 and owns many popular brands such as Snickers®, M&M’s®, and Kind® earning $47 billion dollars in sales in 2022.
Steve Cahillane, the Chairman, President and CEO of Kellanova made the following statement on the acquisition, “This is a truly historic combination with a compelling cultural and strategic fit. Kellanova has been on a transformation journey to become the world’s best snacking company, and this opportunity to join Mars enables us to accelerate the realization of our full potential and our vision.”
This acquistion does raise some antitrust questions. If the agreement goes through, it will result in Mars-Kellanova being one of the top five packaged food and beverage conglomerates in the world. Mars Inc. owns a notable market share in chocolate production, candy production, and confectionary wholesaling. By acquiring a reputable snacking brand, Mars will significantly increase its market share in packaged foods industry. This raises concern among customers, as companies who own the majority of the market share have the ability to raise prices as a result of a lack of competition.Consumers are already grappling with rising food prices, as the USDA reported a 2.2% increase in 2024, with an additional 1.6% hike expected in 2025.
Under the terms of the agreement, Mars will acquire all outstanding equity of Kellanova, which amounts to about 35.9 billion dollars. All of Kellanova’s brand, assets and operations are included in the transaction. This acquisition has been unanimously approved by Kellanova’s Board of Directors, but is still subject to shareholder approval and other closing conditions. This will result in the deal to close at the beginning of 2025. Mars will finance the acquisition through both cash and new debt.
Contact Emilia at emilia.fedasz@student.shu.edu