Mars acquires snack maker Kellanova in $36 billion deal

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STORY: Two of the largest candy and snack brands are now teaming up…

as family-owned candy giant Mars announced on Wednesday that it is buying Cheez-It maker Kellanova for nearly $36 billion.

The acquisition puts well-known snack foods - from M&M's and Snickers, to Pringles and Pop-Tarts - under the same roof, in one of the biggest deals in the industry.

The news comes as the U.S. packaged food sector is seeing robust dealmaking as companies seek scale to weather the impact of consumers shifting to cheaper private label brands.

In an interview with Reuters, Mars CEO Poul Weihrauch said the combined company would hold prices steady amid still-inflationary times.

In addition to prices, investors worry about a decline in sales due to the greater adoption of weight-loss drugs such as Ozempic and Wegovy.

Legal experts have told Reuters that the acquisition - which dwarfs Mars' $23 billion takeover of Wrigley in 2008 - is not expected to face too many antitrust roadblocks due to the limited product overlap.

Shares of Kellanova rose more than seven-and-a-half percent in Wednesday afternoon trading.