Mars Close to Acquiring Snack Maker Kellanova in $30 Billion Deal

Mars Inc. is planning to acquire Kellanova, the maker of Pringles chips and Eggo waffles, in a nearly $30 billion deal, according to the Wall Street Journal. This acquisition comes as the packaged-food industry is facing declining volumes, slowing growth, and a weakening global consumer.

Companies, including Mars, are turning to innovation and new markets to boost sales amidst pushback from shoppers on price hikes. Kellanova, which spun off its cereal business last year, has seen strong earnings and recently raised its full-year guidance driven by new products and marketing initiatives.

The deal would combine Mars' iconic brands like Twix, Bounty, Milky Way, M&M's, and Cheez-It with Kellanova's popular snack brands, such as Pop-Tarts, Rice Krispies Treats, and Town House. This acquisition is part of Mars' strategy to diversify its $47 billion portfolio and offset challenges from inflation and weight-loss drugs.

The deal is still subject to approval from Kellanova shareholders and regulatory authorities.