Mars to Acquire Pringles and Pop-Tarts Maker Kellanova in $36 Billion Deal

Mars, the global confectionery giant, has announced a significant acquisition deal to purchase Kellanova, the company behind well-known brands like Pringles and Pop-Tarts, for nearly $36 billion (£28 billion). This acquisition marks the largest snacking buyout of the year, with experts predicting minimal regulatory resistance.

The move comes as consumers increasingly turn to budget-friendly own-brand snacks, a trend identified by market analysts at Mintel. Despite the popularity of junk food, there is a growing shift towards healthier snacking options in the UK.

Mars, known for its iconic brands like M&Ms and Skittles, also offers healthier alternatives such as Nature’s Bakery. Similarly, Kellanova, which was spun off from Kellogg’s in 2023, sells snacks and cereals outside North America, including health-conscious options like Nutrigrain.

This acquisition surpasses Mars’ $23 billion purchase of Wrigley in 2008 and is expected to strengthen Mars’ position in the global snacking market. The deal will see Kellanova integrated into Mars Snacking, led by Andrew Clarke and based in Chicago. The transaction is anticipated to be finalized in the first half of 2025.

The snacking industry is currently navigating challenges such as rising food and drink prices, which have increased by nearly a third between September 2021 and September 2023, according to the Institute for Fiscal Studies. Additionally, the UK government has implemented regulations to curb the promotion of unhealthy foods, with further restrictions set to take effect in 2025, including a ban on “buy-one-get-one-free” offers for junk food.