Mars, the well-known family-owned candy giant behind brands like M&M’s and Snickers, announced on Wednesday its plan to acquire Kellanova, the company that produces Cheez-It and Pringles, in a nearly $36 billion all-cash deal.

The acquisition stands as the largest in the history of the packaged food industry.

Mars will pay $83.50 per share for Kellanova, reflecting a 33% premium over Kellanova’s closing price on August 2, just before Reuters broke the news that Mars was exploring the acquisition. Following the announcement, Kellanova’s shares jumped 8% to $80.45 in pre-market trading.

This acquisition comes at a time when major U.S. packaged food companies, such as Kraft Heinz, Mondelez, and Hershey, are experiencing slower sales growth. This slowdown is due to budget-conscious consumers opting for cheaper, private-label products over more expensive branded items. The challenging environment has led to increased dealmaking in the sector, as companies seek to gain scale and withstand the pressures of price inflation and changing consumer behavior.

Mars’ acquisition of Kellanova significantly surpasses its $23 billion purchase of Wrigley in 2008. The deal will bring together a broad range of popular consumer brands under Mars’ umbrella, including Twix, Bounty, and Milky Way chocolates, along with Kellanova’s snack products such as Pop-Tarts, Rice Krispies Treats, and Eggo frozen waffles.

Legal experts anticipate minimal antitrust challenges for the acquisition, given the limited overlap between the product offerings of Mars and Kellanova.

Kellanova, which separated from WK Kellogg Co last October, primarily focuses on the salty snacks business both in the U.S. and globally, as well as cereal sales outside of North America. WK Kellogg retained the North American cereal business of the original Kellogg company.

The Wall Street Journal initially reported the details of the deal earlier this week.

With inputs from Reuters