Confectionery, food and pet care giant Mars has agreed to acquire Kellanova in a $29 billion deal. This is one of the biggest deals of the year.<\/p>\n\n\n\n
The U.S. conglomerate, known for sugary snacks such as M&M’s, Snickers and Skittles, plans to pay $83.50 a share for Kellanova, the sources said, adding that Mars would also take on $6 billion in net debt. . They added that official announcements are expected Wednesday morning in New York.<\/p>\n\n\n\n
The price Mars is offering to pay is unusual in the consumer sector, especially for a company that makes products that don’t favor health-conscious customers.<\/p>\n\n\n\n
What does the Mars deal mean?<\/strong><\/p>\n\n\n\n Mars’ expected acquisition also comes as consumers have recently cut back on spending after several years of inflation, which has pushed prices for many staples above pre-pandemic levels.<\/p>\n\n\n\n However, Kellanova has so far managed to weather a slowdown in US consumer spending and recently raised its full-year sales forecast after beating expectations with its latest earnings.<\/p>\n\n\n\n The New York-listed company, which makes Pringles, Cheez-It, Rice Krispies Treats and Eggo, was created in 2023 after Kellogg spun off its breakfast cereal and snack businesses.<\/p>\n\n\n\n Mars, which is one of the largest family-owned businesses in the world, has annual sales exceeding $50 billion and a workforce of more than 150,000 employees.<\/p>\n\n\n\n The proposed deal is likely to face significant antitrust hurdles, as competition watchdogs appointed by President Joe Biden’s administration question large mergers and acquisitions.<\/p>\n\n\n\n Dealmaking has slowed sharply in recent years, although it has started to pick up in recent months. If Mars’ acquisition of Kellanova is approved, it is likely to start a new wave of deals in the industry.<\/p>\n","protected":false},"excerpt":{"rendered":" Confectionery, food and pet care giant Mars has agreed to acquire Kellanova in a $29 billion deal. This is one of the biggest deals…<\/p>\n","protected":false},"author":1,"featured_media":19836,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[620,946],"tags":[5775,5776,3878,1787],"class_list":["post-19835","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-companies","tag-deal","tag-kellanova","tag-mars","tag-mergers-acquisitions"],"_links":{"self":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts\/19835","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19835"}],"version-history":[{"count":1,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts\/19835\/revisions"}],"predecessor-version":[{"id":19837,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts\/19835\/revisions\/19837"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/media\/19836"}],"wp:attachment":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19835"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19835"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19835"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}