Snickers maker Mars is reportedly acquiring Kellanova for nearly $30 billion, according to Reuters news agency. Kellanova is a maker of snacks such as Pringles and Cheez-it.
As per the news agency, Mars will pay $83.50 per share in an all-cash deal for Kellanova.
This potential deal would be the biggest ever for Mars. So far, the biggest deal for the Snickers maker was in 2008, when it acquired Wrigley for $23 billion.
According to Reuters, after the completion of the deal, Kellanova will become a part of Mars Snacking, led by Global President Andrew Clarke.
Kelloanova, in a regulatory filing, said that the closing date for the deal could be extended by up to 12 months, if they don’t receive the necessary regulatory approvals by August 2025.
Additionally, Kellogg’s CEO Steve Cahillane said he would be leaving the combined company when the deal closes.
In case of failure to obligation regulatory approvals, Mars will have to pay a termination fee of $1.25 billion as per the terms of the deal. On the other hand, Kellanova will have to pay $800 million to Mars in case of a change in board recommendation, Reuters report added.
Mars will reportedly finance the deal through cash and a debt financing commitment of $29 billion from JPMorgan Chase and Citi, Reuters said
Kellanova split from WK Kellogg Co. last October. Kellanova logged net sales of more than $13 billion in 2023.
Since the separation, Kellanova’s shares have traded at a discount to peers such as Hershey and Mondelez International.