Mars Acquires Cheez-It Maker Kellanova in $36 Billion Deal: Biggest Snacking Tie-Up of the Year

Mars, the family-owned candy giant, is acquiring Kellanova, the maker of Cheez-It, in a deal worth nearly $36 billion. The acquisition aims to combine popular brands like M&M's, Snickers, Pringles, and Pop-Tarts under one roof. Mars plans to stabilize snack prices and expand in major markets like Europe and Africa.

In a landmark move within the snacking industry, family-owned candy titan Mars has announced its acquisition of Cheez-It producer Kellanova for nearly $36 billion. This strategic buyout, the largest deal in the sector this year, aims to bring together heavyweights such as M&M's, Snickers, Pringles, and Pop-Tarts.

Mars disclosed that it would pay $83.50 per share for Kellanova, which represents roughly a 33% premium to Kellanova's closing price on Aug. 2, just before news of the deal broke. CEO Poul Weihrauch stated that the combined entity hopes to maintain price stability amidst ongoing inflation concerns. 'We are now a bigger and stronger company,' Weihrauch told Reuters. 'We aim to absorb more costs internally, easing the inflationary burden on consumers.'

This acquisition comes as food prices in the U.S. have soared by approximately 25% from 2019 through 2023. Despite inflation beginning to moderate, consumers across the U.S. and Europe are increasingly turning to private label brands for more affordable options. Experts believe the newly formed company will focus on scaling up and investing locally, making healthy snacking options more readily available.

(With inputs from agencies.)