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Mars’ Acquisition of Kellanova Clears U.S. Regulatory Hurdles

While exact timing isn’t available, deal is expected to close by end of 2025
Emily Crowe, Progressive Grocer
Sustainable Packaging
Mars plans to boost its offerings through the acquisition of Kellanova.

Nearly one year after Mars Inc., entered into a definitive agreement to acquire Kellanova, the U.S. Federal Trade Commission (FTC) has concluded its antitrust review of the deal, with no conditions or remedy requirements.

The acquisition, originally revealed in August of last year, will see Mars paying $83.50 per share in cash, for a total consideration of $35.9 billion, including assumed net leverage. Analysts described the deal as the largest CPG transaction since the merger between Kraft and H.J. Heinz in 2015. 

“We are very pleased that the FTC has completed its review of the transaction without the imposition of any condition or requiring any remedy,” said Mars President and CEO Poul Weihrauch. “The transaction has now received all but one of the 28 required regulatory clearances, with only the review by the European Commission outstanding. This brings us one step closer to uniting two iconic businesses with complementary footprints and portfolios, allowing us to deliver more choice and innovation to consumers.”

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While exact timing can’t be predicted, Mars and Kellanova expect the acquisition to close toward the end of 2025. Once the transaction is complete, Kellanova will become part of Mars Snacking, headed by Global President Andrew Clarke and based in Chicago. Battle Creek, Mich. – the historic hometown of Kellogg’s brands – will remain a core location for the combined organization.

“This represents a significant milestone on our path to combine Mars Snacking and Kellanova,” said Steve Cahillane, chairman, president and CEO of Kellanova. “We continue to believe this is an exciting opportunity to create a broader, global snacking business that is better positioned to meet evolving consumer needs and preferences.”

Last year, Kellanova, which was formerly known as Kellogg Co., completed the previously reported separation of its North American cereal business, WK Kellogg Co, resulting in two independent public companies

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