Mars, whose brands include M&M’s, Snickers and Skittles, is to buy food giant Kellanova for $35.9bn (£27.9bn), it has been confirmed.
Kellanova, which was created when the Kellogg Co, which was formed in 1906, split into three companies, and owns brands such as Pringles, Cheez-Its and Pop-Tarts.
In a statement, Mars Inc said it will pay $83.50 (£65.02) per share in cash, valuing the company at $35.9bn (£27.9bn).
The deal is expected to close in the first half of next year.
‘A substantial opportunity for Mars’
Poul Weihrauch, chief executive and office of the president of Mars, said: “In welcoming Kellanova’s portfolio of growing global brands, we have a substantial opportunity for Mars to further develop a sustainable snacking business that is fit for the future.
“We will honor the heritage and innovation behind Kellanova’s incredible snacking and food brands while combining our respective strengths to deliver more choice and innovation to consumers and customers.
“We have tremendous respect for the storied legacy that Kellanova has built and look forward to welcoming the Kellanova team.”
‘A truly historic combination’
Steve Cahillane, chairman, president and CEO of Kellanova, added: “This is a truly historic combination with a compelling cultural and strategic fit.
“Kellanova has been on a transformation journey to become the world’s best snacking company, and this opportunity to join Mars enables us to accelerate the realisation of our full potential and our vision.
“The transaction maximises shareholder value through an all-cash transaction at an attractive purchase price and creates new and exciting opportunities for our employees, customers, and suppliers.
“We are excited for Kellanova’s next chapter as part of Mars, which will bring together both companies’ world-class talent and capabilities and our shared commitment to helping our communities thrive.
“With a proven track record of successfully and sustainably nurturing and growing acquired businesses, we are confident Mars is a natural home for the Kellanova brands and employees.”