Mars to acquire Pringle maker Kellanova in $36bn deal

New Delhi:  Mars is acquiring Pringle maker Kellanova in a nearly $36 billion deal, marking the largest transaction of the year. Mars will pay $83.50 per share for Kellanova, a 33% premium over its price before news of the deal emerged.

This acquisition combines Mars' brands like M&M's and Snickers with Kellanova's Pringles and Pop-Tarts. 

Mars CEO Poul Weihrauch plans to keep prices stable and absorb deal costs to ease inflationary pressures. Post-acquisition, Kellanova will join Mars Snacking under Global President Andrew Clarke, with operations based in Chicago.

The deal, valued at $28.58 billion excluding debt, is not anticipated to face significant antitrust issues due to minimal overlap between the companies' offerings. The completion of the transaction is expected by mid-2025, with potential extensions if regulatory approvals are delayed.

Kellanova's shares rose about 8% to $80.25 following the announcement. The acquisition will be financed with cash and a $29 billion debt package from JPMorgan Chase and Citi. Advisers include Citi and Skadden, Arps, Slate, Meagher & Flom for Mars, and Goldman Sachs, Kirkland & Ellis, and Lazard for Kellanova.