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International candy giant Mars may acquire well-known snack manufacturer Kellanova for approximately US$30 billion.

On August 13, local time, according to foreign media reports, Mars will acquire Kellanova, which owns brands such as Cheez-It and Pringles, for an all-cash transaction of $83.50 per share. The total amount is close to $30 billion (about RMB 214.5 billion), and it is expected to be announced as early as August 14. Once the transaction is completed, it will become one of the largest transactions in the history of the packaged food industry.

Kellanova's predecessor was Kellogg's, a world-renowned cereal breakfast and snack manufacturer. Kellogg was founded in 1906 and is headquartered in Michigan, USA. At the end of 2023, it was split into two independent listed companies, Kellanova and WK Kellogg. Kellanova (Nasdaq: K) is mainly engaged in snack business, covering brands such as Pringles, Cheez-It and Rice, while WK Kellogg (Nasdaq: KLG) is mainly engaged in cereal business.

Since the news of Kellanova's acquisition in early August, coupled with better-than-expected financial reports, the company's stock price has risen sharply. On the 13th, Kellanova's stock price rose 0.69% to close at $74.50 per share, with a total market value of $25.5 billion. Kellanova's second quarter 2024 financial report released on August 1 showed that the company's revenue in the second quarter was $3.192 billion, a year-on-year decrease of 4.7%; net profit was $344 million, a year-on-year decrease of 3.6%.

On the other hand, Mars is one of the world's largest food producers. It was founded in 1911 and is headquartered in Virginia, USA. It owns many well-known candy and chocolate brands including Dove, Snickers, M&M's, Skittles, Wrigley, and Extra.

Although Mars, a private company, does not disclose its performance publicly, it has a significant share of the candy and chocolate industry. According to the latest data released by the candy industry magazine Candy Industry, Mars' annual net sales of candy are $22 billion, ranking second in the "2024 Global Top 100 Candy Companies Ranking", second only to Mondelez International.

In addition, Mars has also entered the pet care industry, acquiring VCA, the leader of the US chain of pet hospitals, for US$7.7 billion in 2017. According to foreign media reports, Mars' annual sales are approximately between US$47 billion and US$50 billion.

Since 2020, Mars has continued to expand its snack business, acquiring the North American business of energy bar manufacturer Kind, Nature's Bakery and Trü Frü (which produces chocolate-coated fruit snacks). In February this year, Mars announced the acquisition of British high-end chocolate brand Hotel Chocolat for 534 million pounds, thereby entering the high-end chocolate segment. The acquisition of Kellanova will help Mars further enter the potato chips and biscuits field.