A Kellanova sign outside the New York Stock Exchange on September 5, 2023.
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Shares of Killanova The company's shares closed up 16% on Monday on reports of interest in buying its shares.
CNBC's David Faber reports that Mars, the owner of M&M's, is in talks to buy the snack company, adding that the rival candy company Hershey He may also be interested in buying the company.
Kellanova spokesman Chris Bahner declined to comment to CNBC, citing company policy. Reuters first reported Mars’ interest.
Ten months ago, Kellogg's spun off its cereal business, naming the new company W.K. Kellogg In honor of its founder. The remaining business unit, renamed Kelanova, contained Pringles, Cheez-It and the North American frozen foods unit, which included Morningstar Farms.
Including Monday's stock move, Kelanova's market cap is nearly $25 billion.
RBC Capital Markets analyst Nick Moody upgraded Kelanova shares to outperform before markets opened on Monday, citing the potential deal as a catalyst.
After several years of price hikes, organic sales growth for food companies has slowed as consumers cut back on their spending, making acquisitions more attractive.
The purchase of Kellanova would also bolster Mars’ snack offerings. While the family-owned company has large confectionery and pet businesses, its snack portfolio includes only a handful of brands, such as Kind.
