Mars Launch Bid to Buy Kellanova

The cash offer will be the biggest acquisition ever made by Mars, eclipsing the $23bn it paid to take over Wrigley in 2008. The privately owned chocolate maker announced the purchase on Wednesday. The deal could attract attention from competition watchdogs as it will see brands like Pringles, Milky Way, and Twix brought together in a single company.

However, analysts believe the overlap between brands and products isn’t likely significant enough to cause problems with the watchdog. With around 23,000 employees, Kellanova has expanded into African and Latin American markets, with annual sales reaching $13bn worldwide. The deal is still to be approved by Kellanova’s shareholders and the regulators.

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Mars chief executive Poul Weihrauch said:

In welcoming Kellanova’s portfolio of growing global brands, we have a substantial opportunity for Mars to further develop a sustainable snacking business that is fit for the future. We will honour the heritage and innovation behind Kellanova’s incredible snacking and food brands while combining our respective strengths to deliver more choice and innovation to consumers and customers.

Chances of the deal going through are enhanced by the support of the WK Kellogg Foundation Trust and the Gund family, who have said that they will be using their shares, almost 21% of the total K stock, to back this buyout offer.