New York: Family-owned candy giant Mars is preparing to sell bonds worth between $25 billion and $30 billion as soon as next week to help finance its takeover of Pringles maker Kellanova, according to people familiar with the matter, in a deal that would headline a $40 billion rush of acquisition financing bonds. Banks led by Citigroup and JPMorgan Chase are preparing to market the bond sale to potential investors sometime next week, the sources said, cautioning that the timing of the bonds sale is subject to market conditions and could change.
According to Radio Television Brunei, the bond sale is a significant move by Mars as it seeks to fund its ambitious plan to acquire Kellanova. The potential acquisition highlights Mars' strategy of expanding its portfolio beyond its traditional candy business. The involvement of major banks like Citigroup and JPMorgan Chase indicates the scale and importance of this financial endeavor in the corporate bond market.
The planned bond issuance by Mars is poised to be one of the largest in recent years, especially within the context of acquisition financing. The move comes amidst a broader trend of companies leveraging the bond market to finance significant mergers and acquisitions, adding to the $40 billion wave of acquisition-related bonds expected to hit the market in the near future.