Kellanova Shares Surge 14% on Report of Potential Acquisition by Mars

Shares of Kellanova (NYSE:K) surged over 14% on Monday following a Reuters report that Mars, the family-owned food giant famous for brands like M&M's and Snickers, is considering acquiring the snack maker.

If the acquisition proceeds, it would represent one of the largest deals in the packaged food sector, with Kellanova's market value around $27 billion, including debt. Despite a 28% rise in Kellanova's shares this year, the company had been trading at a discount compared to industry peers like Hershey and Mondelez International, making it an attractive acquisition target.

However, sources cited by Reuters cautioned that there is no guarantee Kellanova will reach a deal with Mars. Other potential buyers could emerge, and there remains the possibility that no agreement will be finalized.

The potential deal underscores the ongoing trend of robust mergers and acquisitions in the packaged food industry as companies seek to scale up and combat price inflation. For Mars, acquiring Kellanova would mark its largest purchase ever, surpassing its $9.1 billion acquisition of veterinary hospital operator VCA in 2017.