Mars is going after Kellogs and Pringles.
Last fall, Kellogg's spun off its North American cereal business and rebranded as Kellanova, attracting rival Mars. The latter is now reportedly on the cusp of acquiring the company.
A multi-billion-dollar mega-deal is brewing in the food industry. Insiders report that confectionery giant Mars is close to acquiring Pringles maker Kellanova in a deal that could be worth nearly $30 billion.
Family-owned Mars, which produces Snickers and M&M's, is reportedly offering $83.50 per Kellanova share, according to an insider. Neither Kellanova nor Mars have commented yet. The acquisition would be Mars' largest ever, surpassing its $23 billion purchase of Wrigley in 2008.
Kellanova reported second-quarter revenues of $3.2 billion, down around five percent, but operating profits rose significantly to $493 million.
In October 2023, cereal maker Kellogg's split into Kellanova and WK Kellogg. Kellogg's rebranded as Kellanova and continues to distribute its famous flakes worldwide, excluding North America, where WK Kellogg now operates.
Kellanova's shares have risen around 20 percent since the spinoff from WK Kellogg last October. However, the stock still trades at a discount to some competitors like Hershey and Mondelez International, making it a potential takeover target.
The potential acquisition of Kellanova by Mars would involve the purchase of various foodstuffs, including its popular cereals and snack brands. Should the deal go through, Mars would significantly expand its portfolio, incorporating new foodstuffs into its global operations.
