(Bloomberg) — Candy giant Mars Inc., the maker of ubiquitous confections such as Snickers and M&M’s, is exploring the acquisition of Kellanova in what would be one of the biggest deals ever in the packaged food sector, Reuters reported.
Battle Creek, Michigan-based Kellanova, with a market value of about $20 billion, declined to comment to Reuters. Mars of McLean, Virginia, one of the largest closely held companies in the US, didn’t immediately respond to requests for comment from the news agency.
There’s no certainty that Kellanova, which makes popular snacks including Pringles and Pop-Tarts, will engage in talks or pursue a deal with Mars, the news agency reported Sunday, citing people with knowledge of the matter. Another suitor may also approach Kellanova, the people told the news agency.
Kellanova, which reported earnings last week, raised its guidance for the full year as new products and marketing drove higher sales of its brand-name snacks.
Its products include the snack, plant-based and international cereal businesses of the former Kellogg Co. from when that company completed a spinoff last year. The US cereal business went to WK Kellogg Co.
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