Mars' Acquisition of Kellanova Clears FTC Review
MCLEAN, Va., and CHICAGO — Mars Inc.'s acquisition of Kellanova is one step closer to wrapping up.
The U.S. Federal Trade Commission (FTC) concluded its antitrust review of the pending acquisition. Based on the current status of the ongoing antitrust review by the European Commission, Mars and Kellanova expect the transaction to close toward the end of 2025, subject to customary closing conditions. The exact timing cannot be predicted with any certainty at this point, the companies said.
"We are very pleased that the FTC has completed its review of the transaction without the imposition of any condition or requiring any remedy. The transaction has now received all but one of the 28 required regulatory clearances, with only the review by the European Commission outstanding," said Poul Weihrauch, CEO and office of the president, Mars Inc. "This brings us one step closer to uniting two iconic businesses with complementary footprints and portfolios, allowing us to deliver more choice and innovation to consumers."
Last summer, Mars and Kellanova entered into a definitive agreement under which Mars will acquire Kellanova for $83.50 per share in cash, for a total consideration of $35.9 billion. Upon completion of the transaction, Kellanova will become part of Mars Snacking, led by Snacking Global President Andrew Clarke.
Kellanova is home to well-known snacking brands, including Pringles, Cheez-It, Pop-Tarts, Rice Krispies Treats, NutriGrain and RXBAR, as well as food brands such as Kellogg's (international), Eggo and MorningStar Farms.
[Click here to read a quote from Daniel Guarnera, director of the Bureau of Competition, regarding the end of the FTC's early investigation]
The addition of Kellanova provides Mars Snacking — which includes billion-dollar snacking and confectionery brands including Snickers, M&M'S, TWIX, Dove and Extra, as well as KIND and Nature's Bakery — with entry into new attractive snacking categories, as Convenience Store News previously reported.
It will add two new billion-dollar brands, Pringles and Cheez-It, to the Mars business, which today includes 15 billion-dollar brands. The deal will also expand the health and wellness umbrella for the Mars Snacking portfolio with the addition of new complementary products, RXBAR and NutriGrain, to reflect global trends and preferences.
"This represents a significant milestone on our path to combine Mars Snacking and Kellanova. We continue to believe this is an exciting opportunity to create a broader, global snacking business that is better positioned to meet evolving consumer needs and preferences," said Steve Cahillane, chairman, president and CEO, Kellanova.
Kellanova's net sales for 2023 were $13 billion.
With more than 150,000 associates across its Petcare, Snacking and Food businesses, Mars had net sales of more than $50 billion in 2023.