What is Next for Mars' Takeover of Kellanova?

Mars has received unconditional approval from the European Commission for its acquisition of Kellanova, clearing the final regulatory hurdle for one of the food and drink sector's largest deals in recent years.

The transaction is expected to close on 11 December 2025, subject to customary closing conditions.

The approval from Brussels marks the 28th and final regulatory clearance required for the merger, which was first announced on 14 August 2024.

Anders Bering, the Vice President of Global Corporate Affairs at Mars Snacking, describes the milestone as a culmination of extensive cross-company collaboration.

"Big day today, as Mars finally received the last regulatory approval needed to complete the pending acquisition of Kellanova," he says.

"We are so excited about combining these two companies with incredible legacies, brands and people into a +$30bn Snacking business."

Upon completion, Kellanova's shares will be delisted from the New York Stock Exchange.

Creating a snacking powerhouse

The combined business will generate approximately US$36bn in annual revenues, consolidating a portfolio that spans some of the industry's most recognisable brands.

Kellanova brings Pringles, Cheez-It, Pop-Tarts, Rice Krispies Treats and RXBAR to Mars's existing stable of confectionery and snacking brands, which includes the likes of Snickers, M&M'S, Twix, Skittles and Kind.

The merger will see the company operate across more than 145 markets with a workforce well in excess of 50,000 employees.

Mars Snacking will maintain its headquarters in Chicago and oversee 80 production facilities globally, alongside more than 170 retail outlets including Hotel Chocolat and M&M'S World stores.

The combined portfolio will include nine brands that each generate over US$1bn in annual sales.

The strategic rationale behind the acquisition

This is an exciting time for the teams at both Mars and Kellanova, and the strategic rationale behind the acquisition is plain to see.

"We are excited to have received final regulatory approval for the pending acquisition of Kellanova," says Poul Weihrauch, CEO and Office of the President of Mars.

"Our focus now turns to welcoming Kellanova employees to Mars and creating an even more innovative global snacking business that delivers greater choice and quality to more consumers around the world."

The acquisition represents a significant bet on the global snacking category for the family-owned Mars business, which generates approximately US$55bn in annual revenues across its pet care, snacking and food divisions.

Andrew Clarke, Global President of Mars Snacking, believes that Kellanova will perfectly complement Mars' already huge portfolio of brands and products.

"We can't wait to welcome Kellanova talent to Mars and create a shared, global snacking leader with a beloved range of brands," he explains.

"We've said all along that Mars Snacking and Kellanova will be better together, building on the strength of our respective legacies and capabilities to unlock new possibilities and drive growth."

The acquisition has required coordination across multiple regulatory jurisdictions and corporate functions over more than a year.

"So much hard work has gone into this, and I am super proud of the team effort across both companies," Anders says.

The view from Kellanova

Steve Cahillane, who is Chairman, President and CEO of Kellanova, acknowledges just how significant the transaction is for his company's employees and its brands.

"This combination will bring together two purpose-driven and principles-led companies," he says. "Serving as Kellanova's Chairman, President and CEO has been a true honour, and I'm looking forward to seeing Kellanova people and brands thrive as part of Mars Snacking."

Kellanova shareholders approved the transaction as early as 1 November 2024, though for a deal this size to be finalised always takes a long time.

The acquisition marks the end of Kellanova's independent existence as a publicly traded company, following its spin-off from the original Kellogg Company structure. Its products will live on in this new era, however, and the vast majority of its employees are expected to remain in their roles,  under the wing of Mars.

What a deal this size means for the industry

The consolidation creates one of the world's largest pure-play snacking businesses, positioning Mars to compete more effectively against its rivals, such as Mondelēz and PepsiCo.

The transaction brings together complementary strengths too, with Mars's traditional dominance in confectionery and Kellanova's established positions in savoury snacks and portable breakfast foods.

The integration will test Mars's ability to maintain its family-owned operational model whilst absorbing a major publicly traded company with different corporate governance structures and reporting requirements.

Production and distribution synergies across the 80 manufacturing sites could drive cost efficiencies, though the companies have not disclosed specific integration targets or expected job impacts.