Mars will pay $83.50 per share in an all-cash deal for Kellanova that is set to be announced on Wednesday, the source said
, maker of snacks such as Cheez-It and Pringles, for nearly $30-billion, a person familiar with the matter told Reuters on Tuesday.
The offer represents a near 33 per cent premium to Kellanova’s close on Aug. 2, the day before Reuters first reported that Mars was exploring a deal for the Pringles maker. Shares of the company were up 8 per cent at $80.54 in premarket trading on Wednesday.The deal for Kellanova comes as sales growth at U.S. packaged food companies including Kraft Heinz, Mondelez and Hershey have taken a hit as budget-strapped customers hunt for cheaper, private-label alternatives to pricier branded items.
The potential Kellanova deal would be the biggest ever for Mars, dwarfing its $23-billion takeover of Wrigley in 2008. The acquisition is not expected to go through too many antitrust roadblocks due to the limited overlap between the two companies’ offerings, legal experts had told Reuters.
Deal Mars Reuters Kellogg Cent Cereal Maker M&M Kraft Heinz Wrigley
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