Overview
The company behind M&M’s and Snickers just swallowed Pringles, Cheez-It and Pop-Tarts. Mars has closed its $35.9 billion all‑cash acquisition of Kellanova, taking the Kellogg snack spin‑off private and rolling its brands into an enlarged Mars Snacking empire.
This isn’t just another food deal. It concentrates a huge slice of the world’s candy, chips, crackers and breakfast treats under one privately held player, testing how much consolidation regulators, retailers and consumers will tolerate before pushing back on prices, choice and power at the supermarket shelf.
Key Indicators
People Involved
Organizations Involved
Mars is the privately held confectionery, pet care and food giant that just bought Kellanova.
Mars Snacking is the division where M&M’s now sits next to Pringles and Cheez‑It.
Kellanova was Kellogg’s snacks-led offspring; it now lives inside Mars’s private empire.
The FTC is the U.S. antitrust watchdog that decided not to block the Mars–Kellanova deal.
The EU antitrust arm was the final regulator to bless the Mars–Kellanova mega‑merger.
Timeline
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Mars Closes Acquisition, Kellanova Leaves Wall Street
ClosingMars and Kellanova announce completion of the transaction; Kellanova becomes a wholly owned Mars subsidiary and its shares are delisted from the NYSE.
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Kellanova’s S&P 500 Exit Cleared as Ares Steps In
MarketS&P Dow Jones Indices announces that Ares Management will replace Kellanova in the S&P 500 ahead of Mars’s closing.
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EU Clears Mars–Kellanova After Full Investigation
RegulatoryThe European Commission approves the $36 billion takeover without major divestitures, removing the final big regulatory obstacle to closing.
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Europe Opens Deeper Probe Into Snack-Sector Power
RegulatoryWithin hours of the FTC’s green light, the European Commission launches an in‑depth Phase II review over potential price hikes and retailer squeeze.
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FTC Ends U.S. Antitrust Review, Says Deal Isn’t Illegal
RegulatoryAfter a yearlong probe, the FTC grants early termination of its investigation, saying evidence does not support blocking the Mars–Kellanova merger.
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Kellanova Shareholders Sign Off on Mars Takeover
Shareholder VoteKellanova investors approve the Mars acquisition at a special meeting, clearing a key condition for closing.
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Mars Announces $35.9 Billion All-Cash Deal for Kellanova
Deal AnnouncementMars and Kellanova unveil an agreement for Mars to acquire all Kellanova shares for $83.50 in cash, valuing the company at $35.9 billion including debt.
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Kellogg Spins Off Cereals, Births Snacks-Led Kellanova
CorporateKellogg completes the separation of WK Kellogg Co, leaving Kellanova as a global snacks and international cereal company.
Scenarios
Mars Turns Into a Snack Superpower — and Quietly Pushes Prices Higher
Discussed by: Forbes columnists, grocery-industry analysts, and M&A commentary from Cornell Mergersight and AInvest
In this scenario, Mars wrings the synergies it promised from Kellanova: shared factories, logistics and marketing bring real cost savings, and the enlarged Mars Snacking unit gains even more leverage over supermarket chains. With snacks and candy already highly concentrated, gradual price increases and richer trade terms stick, especially where private‑label rivals are weak. Regulators, having already cleared the deal, struggle to respond unless there’s an obvious smoking gun, leaving consumers to absorb higher prices over several years.
Backlash Builds: Regulators and Retailers Reopen the Mars–Kellanova Question
Discussed by: Antitrust commentators, consumer advocates, competition-law outlets such as Competition Today
Here, post‑merger pricing and shelf‑space tactics spark a backlash. Independent grocers and large chains complain that a turbocharged Mars is using its broad portfolio to demand preferential placement and fees across categories, echoing concerns flagged by skeptics when the deal was announced. If food inflation flares again, lawmakers may push the FTC or the European Commission to revisit the combined company’s behavior, perhaps through conduct remedies or new sector‑wide rules on slotting fees and ‘category captain’ arrangements.
Mars Reshuffles the Portfolio, Spinning or Selling Non-Core Brands
Discussed by: Deal bankers, CPG strategists, financial press covering consumer-goods consolidation
Mega‑mergers often look neat on slides but messy in operations. If integration proves harder than expected, or if parts of Kellanova underperform inside Mars, the company could streamline by selling or spinning smaller or non‑core lines – especially in low‑growth frozen or plant‑based categories. That would echo the way Kraft’s Cadbury acquisition eventually led to a split into Kraft Heinz and Mondelez. Investors and rivals would watch closely for divestiture opportunities in snacks, breakfast or plant‑based brands.
Historical Context
Mars’s 2008 Wrigley Buyout
2008–2016What Happened
In 2008, Mars, backed by Warren Buffett’s Berkshire Hathaway, bought Wrigley for about $23 billion, uniting two candy giants under private ownership. Over subsequent years Mars integrated Wrigley and later folded its chocolate and Wrigley units into a single confectionery business.
Outcome
Short term: The deal vaulted Mars into the top tier of global confectionery and loaded it with acquisition debt.
Long term: Integration was largely viewed as successful, cementing Mars’s playbook of using big, debt‑funded deals to scale snacks.
Why It's Relevant
Shows Mars has executed transformative, leverage‑heavy deals before and suggests it sees Kellanova as a repeatable version of the Wrigley playbook, just across more snack categories.
Kraft’s Takeover of Cadbury and Birth of Mondelez
2009–2015What Happened
Kraft Foods’ hostile bid for UK chocolate maker Cadbury in 2009 provoked political fury and worries about plant closures. Kraft prevailed in 2010, then struggled with culture clashes and portfolio sprawl before eventually splitting its global snacks business into a new company, Mondelez International, in 2012.
Outcome
Short term: The merger expanded Kraft’s footprint but generated controversy over factory shutdowns and broken job promises.
Long term: The split into Kraft Heinz and Mondelez highlighted how mega‑mergers can force later break‑ups when strategies diverge.
Why It's Relevant
Provides a cautionary tale that even successful snack mergers can trigger public backlash, restructuring and eventual portfolio surgery – all risks Mars will have to manage.
Kellogg’s 2023 Breakup Into Kellanova and WK Kellogg Co
2022–2023What Happened
Kellogg announced plans to break into more focused companies, then in October 2023 spun off WK Kellogg Co as its North American cereal arm while renaming the remaining snacks‑led business Kellanova. The move aimed to give investors a purer bet on faster‑growing snacks and emerging markets.
Outcome
Short term: Kellanova debuted as a ‘snacks‑led powerhouse’ with about $13.5 billion in projected 2024 sales.
Long term: Within two years, its independence ended in a sale to Mars, undercutting the idea of a long-lived standalone snacks champion.
Why It's Relevant
Shows how quickly strategic narratives can flip: a spin‑off marketed as value‑creating independence became a stepping‑stone to further consolidation.