Pringles owner Kellanova lifted by confirmation of Mars takeover

Pringles owner Kellanova (NYSE:K) popped nearly 8% higher in Wednesday’s deals with the confirmation that it will be bought by Mars in a $36 billion all-cash deal.

It followed media reports and speculation last week.

Kellanova, which also owns the Pop-Tarts, and Cheez-It brands among other, is being priced at $83.50 per share, which is a 33% premium.

The deal is expected to close in the first half of 2025, pending shareholder and regulatory approval.

Kellanova is the snack’s brand business that was spun off breakfast cereals behemoth Kellogg in 2023.

The acquisition by privately owned Mars will see the new company significantly expanded, adding the Kellanova brands to a portfolio already comprising the likes of Mars, Snickers, M&Ms, Twix, Skittles, along with pet-food brands such as Pedigree and Whiskas.

The deal will help brands tap into new markets, particularly in Asia and Africa.

Mars' CEO, Poul Weihrauch, emphasized the strategic fit of Kellanova’s brands, which align with consumer trends towards healthier snacking options.

Financial markets commentators meanwhile claimed that the the deal is unlikely to face significant regulatory challenges due to the complementary nature of the respective product lines.

Kellanova stock jumped $5.78 or 7.76% in regular trading on Wednesday to close at $80.28.