Confectionery Giant Mars To Acquire Cheez It Parent Kellanova In $35.9B Deal
Portfolio Pulse from Lekha Gupta
Mars, Inc. is set to acquire Kellanova (NYSE:K) for $35.9 billion, valuing the company at $83.50 per share, a 44% premium over its 30-day average trading price. The deal, which includes all of Kellanova's brands and operations, is expected to close in the first half of 2025, pending shareholder and regulatory approvals. Kellanova shares rose 7.54% premarket following the announcement.
August 14, 2024 | 12:14 pm
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NEUTRAL IMPACT
WK Kellogg Co (NYSE:KLG) may see indirect effects from the acquisition of Kellanova by Mars, as Kellanova recently separated from WK Kellogg Co.
While KLG recently separated from Kellanova, the acquisition may have indirect effects on KLG's market perception and performance.
CONFIDENCE 60
IMPORTANCE 50
RELEVANCE 30
POSITIVE IMPACT
First Trust Nasdaq Food & Beverage ETF (NASDAQ:FTXG) may see positive movement as it includes Kellanova, which is being acquired by Mars at a premium.
FTXG includes Kellanova, and the acquisition at a premium could positively impact the ETF's performance.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
iShares Emergent Food and AgTech Multisector ETF (NASDAQ:IVEG) may experience positive effects due to its exposure to Kellanova, which is being acquired by Mars at a premium.
IVEG includes Kellanova, and the acquisition at a premium could positively impact the ETF's performance.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Mars, Inc. is acquiring Kellanova for $35.9 billion, valuing the company at $83.50 per share, a significant premium over recent trading prices. The deal is expected to close in the first half of 2025, pending approvals.
The acquisition by Mars at a significant premium is a positive development for Kellanova shareholders, leading to a short-term increase in stock price.
CONFIDENCE 100
IMPORTANCE 100
RELEVANCE 100