Mars, the sweets, food and petcare conglomerate, is in talks to buy Pringles and Pop-Tarts maker Kellanova, according to people familiar with the matter, in what would be one of the year’s biggest takeovers, Report informs referring to The Irish Times.
New York-listed Kellanova, which had a market capitalization of $22 billion (€20 billion) on Friday, was created in 2023 by the break-up of Kellogg’s that separated its breakfast cereals and snacks businesses. Its shares were trading up about 15 percent at $72.11 on August 5 morning.
Kellanova owns snacks including Pringles, Cheez-Its and Rice Krispies Treats. Family-owned Mars is one of the largest privately held companies, with annual sales of more than $50 billion and more than 150,000 employees.
The potential deal comes as consumers cut their spending after several years of inflation that have left prices for many staples above pre-pandemic levels.
Mars has turned to acquisitions to help fuel growth, including the $9.1 billion purchase in 2017 of VCA, a group of 800 pet care hospitals. In 2008, it paid $23 billion deal for chewing gum and snacks maker Wm Wrigley Jr. Earlier this year, Mars acquired UK-based premium chocolatier Hotel Chocolat for £534 million.
The purchase of Kellanova would also mark one of the food sector’s biggest deals in several years.
