Employment Law

Mars buys Kellanova for $36B: Employee rights

Delicious bars of chocolate, like those made by Mars Canada.

Candy giant Mars is buying snackmaker Kellanova in a $36 billion deal that will significantly expand Mars’ portfolio, bringing together its popular brands such as M&M’s and Snickers with Kellanova’s well-known products like Pringles and Pop-Tarts. The transaction marks one of the largest deals in the consumer food industry.

Details

  • Transaction Value: Mars will pay $83.50 per share for Kellanova, which represents a 33% premium over Kellanova’s closing price on August 2, 2024, just before reports of Mars’ interest emerged.
  • Market Impact: The U.S. packaged food sector is experiencing a surge in dealmaking as companies seek to scale up amid changing consumer preferences, particularly as more consumers shift to cheaper private-label brands.
  • Market Position: Mars currently holds a 4.54% share of the U.S. snacking market, while Kellanova has about 3.9%, with both companies trailing behind market leader PepsiCo.
  • Strategic Goals: Mars plans to enhance its snacking division, invest in local markets, and introduce healthier options through the acquisition, viewing the snack market as “attractive and durable.”
  • Leadership and Operations: Upon completion of the deal in the first half of 2025, Kellanova will become part of Mars Snacking, under the leadership of Global President Andrew Clarke. The combined entity will be headquartered in Chicago.

The deal, which surpasses Mars’ previous $23 billion acquisition of Wrigley in 2008, is not expected to encounter significant antitrust challenges due to the limited overlap in the two companies’ product offerings.

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Who pays severance if Mars doesn’t keep certain Kellanova employees?

If Kellanova’s acquisition by Mars results in you losing your job in Canada, then Kellanova must provide you with full severance pay.

In Canada, the “seller” of the business is responsible for providing proper compensation to staff who lose their job.


WATCH: Employment lawyer Lior Samfiru explains the rights workers have when their employer sells the business on an episode of the Employment Law Show.


If Mars provides you with an employment offer, and you have a good reason for why you don’t want to accept it (i.e. different hours or pay), you might be able to get full severance pay from Kellanova.

Even without a good reason you can still get severance, but it’s very likely that you will only receive your minimum entitlements.

LEARN MORE
Employer sold the business in B.C.? Know your rights to severance
Rights to severance in Alberta when your employer sells the business
Sale of business in Ontario: Rights to severance

How is severance pay calculated?

Severance for non-unionized employees in Canada can be as much as 24 months’ pay.

This includes individuals working full-time, part-time, or hourly in B.C., Alberta, and Ontario. The amount of compensation you are entitled to is calculated using several factors, including:

  • Age
  • Length of service
  • Position at the company
  • Ability to find new work

To figure out how much you could be owed, use our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their severance entitlements.

If your company doesn’t provide you with the correct amount, you have been wrongfully dismissed and should seek legal counsel immediately. Samfiru Tumarkin LLP regularly resolves wrongful dismissal claims and can help you secure proper severance.

LEARN MORE
Severance for provincially regulated employees
Rights to severance for tech sector staff
Severance packages in mass layoffs

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Can Mars make major changes to the jobs of Kellanova employees?

In Canada, non-unionized employees don’t have to accept substantial changes to their job that Mars might try to enforce. Major modifications, such as a demotion, longer shifts, or reduced pay, are illegal.

When significant adjustments are made to the terms of your employment without your consent, there is a very good chance that you can treat it as a constructive dismissal. In this situation, the law allows you to quit your job and pursue full severance pay.

If you believe that you have been constructively dismissed, don’t resign before contacting our firm.

ADDITIONAL RESOURCES
Changes to your employment in B.C.: Your rights
Job changes in Alberta: What employees need to know
Can my employer make changes to my job in Ontario?

New employment contracts for Kellanova staff

If you work for Kellanova and you receive a new employment contract, take the time to carefully review it before signing it.

In many cases, these agreements take away key protections that would otherwise be available to non-unionized employees, including:

  • Eliminating past service: The new owner might attempt to reduce or eliminate your years of service with your previous employer. Don’t sacrifice your seniority. Length of service is a key factor when determining how much severance pay you are entitled to.
  • Reducing severance pay: Some employers try to use a termination clause to reduce your severance entitlements to the bare minimum. Instead of months of pay, you might only receive a few weeks’ pay if you are fired without cause or let go.
  • Ability to make changes: The new owner might attempt to add a clause that gives them the right to change aspects of your job (i.e. hours or pay) without your permission or lay you off without penalty.

Employers in Canada can’t legally force non-unionized workers to sign a new employment contract immediately or a few days after receiving it.

SEE ALSO
Starting a new job? Here’s how an employment contract could limit your rights
Employment Law Show: 5 things to know about employment contracts
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Received a job offer? Speak with an employment lawyer

Before accepting a new employment contract, have the experienced employment law team at Samfiru Tumarkin LLP review the agreement to make sure your workplace rights are protected.

Our lawyers in B.C., Alberta, and Ontario have successfully represented tens of thousands of non-unionized individuals.

We can help you better understand the terms of the contract and advise you on how best to navigate the situation.

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