Shares in Kellanova, makers of Cheez-it and Pringles, have spiked following the proposed buyout by confectionary giant Mars. The proposed deal worth nearly $36 billion would be the biggest in the packaged food industry, overshadowing Mars's $23 billion Wrigley takeover in 2008.

Logging net sales of more than $13 billion in 2023, Kellanova split from WK Kellogg last October and is now set to become part of Mars Snacking on completion set for early 2025. Mars proposes paying $83.50 per share in the all cash deal, marking a 33% premium since Reuters first reported on the deal on August 2^nd and a 12% premium on Kellanova’s Tuesday close. Tuesday saw Kellanova share prices rise 8% to $80.45. Reuters values the company at $28.58 billion, while analysts that the acquisition will increase Mars’ global and US snacking businesses by 40% to 60% respectively.

However, there is some indecision as to whether the products offered by the two companies are similar to provoke antitrust concerns.

Packaged food as a sector has seen sales growth slow, as consumers tighten their belts by swapping out branded products for cheaper labels. Kraft Heinz, Mondelez, and Hershey have all seen profits hit.

(Sources: investing.com, reuters.com)