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Mars takes Kellanova private, creating a $36 billion snack supergiant

Mars takes Kellanova private, creating a $36 billion snack supergiant

Money Moves
By Newzino Staff | |

In 16 months, Kellogg’s snack spin-off went from standalone hopeful to a Mars-owned giant reshaping global snacking.

January 29th, 2026: Cheez-It Wins Product of the Year 2026 Award

Overview

The company behind M&M's and Snickers just swallowed Pringles, Cheez-It and Pop-Tarts. Mars closed its $35.9 billion all‑cash acquisition of Kellanova in December 2025, taking the Kellogg snack spin‑off private and rolling its brands into an enlarged Mars Snacking empire. Early 2026 signals suggest the combined company is moving quickly: industry analysts predict aggressive innovation in flavor mashups—think Pringles-branded candy bars or Cheez-It M&M's—alongside dual-branded marketing campaigns already planned for key 2026 occasions.

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. With Cheez-It already claiming a Product of the Year 2026 award barely six weeks after the merger closed, Mars is demonstrating the commercial clout of its expanded portfolio—and raising the stakes for what comes next.

Key Indicators

$35.9B
Total value of Mars–Kellanova deal
All‑cash enterprise value, including assumed debt, making it 2024’s largest packaged‑food acquisition.
$83.50
Cash per Kellanova share
Offer price, roughly a 44% premium to Kellanova’s prior 30‑day average trading level.
28
Regulatory sign‑offs
Number of global approvals and clearances obtained before the deal closed on December 11, 2025.
9
Billion‑dollar brands at Mars Snacking
Mars says the combined snacking unit now boasts nine brands topping $1 billion in annual sales.

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People Involved

Poul Weihrauch
Poul Weihrauch
Chief Executive Officer, Mars Incorporated (Architect of Mars’s biggest-ever deal, responsible for integrating Kellanova and delivering promised synergies.)
Andrew Clarke
Andrew Clarke
Global President, Mars Snacking (Now leads an expanded Mars Snacking division combining Mars and Kellanova brands.)
Steve Cahillane
Steve Cahillane
Former Chairman, President and CEO of Kellanova; now Chief Executive Officer of Kraft Heinz (Left Kellanova on January 1, 2026 to become CEO of Kraft Heinz; will lead that company through its planned 2026 split into two independent publicly traded companies.)
Daniel Guarnera
Daniel Guarnera
Director, Bureau of Competition, U.S. Federal Trade Commission (Led the FTC team that investigated, then cleared, the Mars–Kellanova merger.)

Organizations Involved

Mars Incorporated
Mars Incorporated
Private company
Status: Family-owned acquirer; now ultimate parent of Kellanova and an expanded Mars Snacking division.

Mars is the privately held confectionery, pet care and food giant that just bought Kellanova.

Mars Snacking
Mars Snacking
Business division
Status: Combined home for Mars and Kellanova’s snack and convenience brands.

Mars Snacking is the division where M&M’s now sits next to Pringles and Cheez‑It.

Kellanova
Kellanova
Consumer packaged goods company
Status: Former NYSE-listed snack and international cereal company, now a wholly owned Mars subsidiary.

Kellanova was Kellogg’s snacks-led offspring; it now lives inside Mars’s private empire.

U.S. Federal Trade Commission
U.S. Federal Trade Commission
Federal agency
Status: Reviewed and cleared the Mars–Kellanova merger after a yearlong antitrust investigation.

The FTC is the U.S. antitrust watchdog that decided not to block the Mars–Kellanova deal.

European Commission
European Commission
EU Executive Body
Status: Opened a Phase II probe, then cleared the Mars–Kellanova transaction with no major remedies.

The EU antitrust arm was the final regulator to bless the Mars–Kellanova mega‑merger.

Timeline

  1. Cheez-It Wins Product of the Year 2026 Award

    Market

    Cheez-It, now owned by Mars following the Kellanova acquisition, is named Product of the Year 2026 winner in the Crisps and Snacks category, signaling early commercial success under new ownership.

  2. Industry Analysis Highlights 2026 Innovation Focus

    Corporate

    FoodNavigator publishes comprehensive analysis predicting innovation will take center stage for Mars in 2026, with expectations for flavor mashups between Mars and Kellanova brands and dual-branded Pringles-Cheez-It campaigns planned across key occasions throughout the year.

  3. Cahillane Exits Kellanova, Joins Kraft Heinz as CEO

    Corporate

    Steve Cahillane steps down from Kellanova effective January 1 to become Chief Executive Officer of Kraft Heinz, replacing Carlos Abrams-Rivera. He will lead Kraft Heinz through its planned 2026 split into two independent companies.

  4. Mars Leases Major Chicago Office Space for Expanded Snacking Unit

    Corporate

    Mars reaches agreement to lease over 100,000 square feet at 400 N. Aberdeen St. in Chicago's Fulton Market District, signaling physical consolidation of its expanded Mars Snacking headquarters following the Kellanova acquisition.

  5. Mars Closes Acquisition, Kellanova Leaves Wall Street

    Closing

    Mars and Kellanova announce completion of the transaction; Kellanova becomes a wholly owned Mars subsidiary and its shares are delisted from the NYSE.

  6. EU Clears Mars–Kellanova After Full Investigation

    Regulatory

    The European Commission approves the $36 billion takeover without major divestitures, removing the final big regulatory obstacle to closing.

  7. Kellanova’s S&P 500 Exit Cleared as Ares Steps In

    Market

    S&P Dow Jones Indices announces that Ares Management will replace Kellanova in the S&P 500 ahead of Mars’s closing.

  8. FTC Ends U.S. Antitrust Review, Says Deal Isn’t Illegal

    Regulatory

    After a yearlong probe, the FTC grants early termination of its investigation, saying evidence does not support blocking the Mars–Kellanova merger.

  9. Europe Opens Deeper Probe Into Snack-Sector Power

    Regulatory

    Within hours of the FTC’s green light, the European Commission launches an in‑depth Phase II review over potential price hikes and retailer squeeze.

  10. Kellanova Shareholders Sign Off on Mars Takeover

    Shareholder Vote

    Kellanova investors approve the Mars acquisition at a special meeting, clearing a key condition for closing.

  11. Mars Announces $35.9 Billion All-Cash Deal for Kellanova

    Deal Announcement

    Mars 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.

  12. Kellogg Spins Off Cereals, Births Snacks-Led Kellanova

    Corporate

    Kellogg completes the separation of WK Kellogg Co, leaving Kellanova as a global snacks and international cereal company.

Scenarios

1

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.

2

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.

3

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

2008–2016

What 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 Today

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

2009–2015

What 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 Today

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

2022–2023

What 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 Today

Shows how quickly strategic narratives can flip: a spin‑off marketed as value‑creating independence became a stepping‑stone to further consolidation.

27 Sources:
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Mars Incorporated Kellanova Kellanova Reuters U.S. Federal Trade Commission Investing.com RTTNews via Nasdaq Barron’s Forbes AInvest Cornell Mergersight Group CoStar News Thread CRE ConfectioneryNews FoodNavigator-USA Consumer Goods Technology Kraft Heinz Company CNBC Fox Business Fast Company FoodNavigator Talking Retail Mars Incorporated Kellanova Reuters Mars Incorporated Kellanova