Mars ‘agrees $30bn deal to buy Pringles maker Kellanova’
Mars, the chocolate to pet food group, has reportedly struck a $30bn (£23.4bn) deal to buy Kellanova, the maker of Pringles and Pop-Tarts.
The all-cash offer, which is expected to be announced later on Wednesday, would be the biggest ever acquisition for the privately owned Mars, dwarfing its $23bn takeover of the chewing gum maker Wrigley in 2008.
The deal could attract scrutiny from competition watchdogs as it would bring together well-known consumer goods brands including Mars’ Twix, Bounty and Milky Way with Kellanova’s Pringles, Special K cereal and Carr’s water biscuits.
However, experts have said that the limited overlap between the two companies’ products mean the deal is likely to be given the green light.
It comes as food brands look for ways to gain scale or cut costs. This is to help offset the impact of inflation and global government action to control the marketing of high fat, salt and sugar snacks, as well as the expected hit on demand because of the new weight-loss drugs such as Ozempic.
Kellanova would help Mars diversify its chocolate-heavy portfolio of brands, which are seen as more vulnerable to falling demand, with savoury snacks and give it more exposure to international markets.
Brands have come under pressure as consumers have switched to supermarket own-labels or cheaper options amid the rising cost of household energy bills, mortgages and other essentials.
Kellanova was split off from WK Kellogg Co last October. It sells snacks in the US and around the world, and cereals including Corn Flakes, Frosties and Rice Krispies outside North America.
The original parent company, WK Kellogg, was left with its North American cereal business, including brands such as Froot Loops and Raisin Bran.
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Mars, which is based in McLean, Virginia, was founded by Frank C Mars, who started making and selling butter cream candy from his kitchen in Tacoma, Washington, in 1911. The now global business had $47bn in annual sales in 2022.
Kellanova and Mars have been contacted for comment.