Packaged food giant Mars is reportedly considering an acquisition of Kellanova in what would be one of the biggest deals in the sector.
There is no guarantee that Kellanova will pursue this deal, however, Reuters reported, citing sources related to the matter.
Another suitor could also approach Kellanova, but it is possible that no deal with any party is reached, the sources added.
Founded in 1911 and headquartered in Virginia, Mars operates under three main divisions – pet care, snacking, and food & nutrition – with annual sales of about US$50 billion. Its snacking segment, which includes M&M’s, Snickers, Orbit and Skittles, accounted for $18 billion in revenue last year, and the company is targeting to double it over the next decade.
Chicago, Illinois-based Kellanova is the owner of brands such as Pringles, Cheez-It and Pop-Tarts. The company currently makes its products in 21 countries and markets them in more than 180 countries.
Kellanova has a market value of about $27 billion including debt, and its shares have increased about 20 per cent since its separation from WK Kellogg last year, according to Reuters.
The potential acquisition will still need approval from US regulators regarding issues related to competition and its effects on prices.
