Chocolate giant Mars to acquire Kellanova, maker of Cheez-Its and Pringles in $29B deal

Acquisition Overview - Mars is acquiring Kellanova in a deal valued at nearly $30 billion, marking the largest acquisition in the packaged food industry [1] - The acquisition price is set at $83.50 per share, representing a 33% premium over Kellanova's closing price on August 2 [1] Company Profiles - Mars is known for its popular chocolate brands, including Snickers, M&Ms, and Milky Way, and is also the world's largest pet food maker [6] - Kellanova's brand portfolio includes Cheez-It, Pringles, and Eggo, and it focuses on salty snacks and cereals outside of North America [6][2] Market Context - The acquisition occurs amid slowing sales growth for US packaged food companies, as consumers are increasingly opting for cheaper private label products over branded items [2] - The deal surpasses Mars' previous acquisition of Wrigley, which was valued at $23 billion in 2008 [3] Regulatory Considerations - Legal experts believe the Mars-Kellanova deal is likely to withstand regulatory scrutiny, as there is limited overlap between their product offerings [5][6] - Antitrust lawyers suggest that it may be challenging for regulators to argue that the merger would raise prices or harm competition [5]