Mars’ Big Acquisition: How the Company Bought Kellanova and Changed the Global Snacks Market
The deal between Mars and Kellanova is one of the biggest consumer-goods acquisitions of 2024. It is not just a company buying another company — it is a major shift in the global snacks market, a market worth hundreds of billions of dollars. In this article, we will look at the deal in simple, clear English from financial, strategic, and industry angles.
💰 1. The Financial Structure of the Deal
This is an all-cash transaction, which shows the huge financial power behind Mars.
- Total Deal Value: About $35.9 billion (this includes the share price + Kellanova’s net debt).
- Share Price: Mars is paying $83.50 per share in cash to Kellanova shareholders.
- Premium: This price is about 44% higher than the average trading price of Kellanova stock in the 30 days before the deal was first reported — a big win for Kellanova investors.
- Financing: Major banks like Citi and JPMorgan are providing the funding needed.
🎯 2. Why Mars Wanted This Deal
Mars is a private, family-owned company. Kellanova is a public company. Bringing them together helps both sides — but Mars benefits the most.
✔ A. Moving Away From Chocolate Dependence
Chocolate is getting very expensive because cocoa prices are rising worldwide.
- Mars depends heavily on chocolate (Snickers, M&M’s, Galaxy).
- Kellanova gives Mars strong access to salty snacks — a fast-growing category that doesn’t depend on cocoa.
✔ B. Expanding Worldwide
Both companies have strong global distribution networks, but in different regions. When combined, they create a massive powerhouse.
The biggest star in this deal is Pringles — a brand so famous that its global recognition is compared to Coca-Cola in drinks.
✔ C. Entering the “Better-For-You” Market
People want healthier snacks today. Brands like RXBAR and Nutri-Grain (owned by Kellanova) give Mars an instant entry into this segment.
📦 3. The New Combined Brand Portfolio
After the deal closes, Mars will own an extremely powerful collection of brands:
| Product Category | Mars Brands | Kellanova Brands |
|---|---|---|
| Chocolate & Candy | Snickers, M&M’s, Twix, Galaxy, Bounty, Skittles | — |
| Salty Snacks | (Weak presence) | Pringles, Cheez-It, Club Crackers |
| Breakfast / Cereals | — | Pop-Tarts, Eggo, Kellogg’s (International) |
| Pet Food | Royal Canin, Pedigree, Whiskas | — |
Important Note: WK Kellogg Co (the Corn Flakes and Froot Loops company) is separate and NOT part of this deal. Mars only gets the international cereal rights outside the U.S. and Canada.
🏭 4. What Happens After the Deal?
- Kellanova will become part of Mars Snacking.
- The new division will be led by Andrew Clarke, Mars’ global snacks president.
- Mars will keep a strong presence in Battle Creek, Michigan (historic home of Kellanova).
📅 5. Timeline and Regulatory Approvals
- Announcement: 14 August 2024
- Expected Closing: First half of 2025
- Antitrust Review: Experts say it will likely pass, because chocolate (Mars) and salty snacks (Kellanova) are not direct competitors.
🌍 6. What This Means for the Future
This deal creates a company strong enough to compete directly with giants like PepsiCo (Lay’s, Doritos) and Mondelēz (Oreo, Cadbury).
For Mars, it is the biggest transformation in its history — turning it from a “chocolate and pet food company” into a global food empire that dominates supermarket shelves from candy to crackers.
✨ Finally
The Mars–Kellanova deal is more than a business transaction — it is a turning point in the global snacks industry. It reshapes markets, creates new competition, and builds a massive new force in packaged foods.
If you'd like, I can also prepare a full comparison between the new Mars and PepsiCo to see who is stronger in each category.
