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Kellanova shares jumped 16% on Monday following news of a possible takeover interest from Mars, the owner of M&M’s, as reported by CNBC’s David Faber. Rival candy maker Hershey is also rumored to be considering a bid for the snack company.
A Kellanova representative, Kris Bahner, declined to comment, citing company policy on handling media inquiries. Reuters was first to report Mars’ interest.
Kellanova emerged as a standalone entity after Kellogg restructured its business 10 months ago, creating W.K. Kellogg Co. for its cereal division and keeping the Kellanova name for its snack brands, including Pringles and Cheez-It, as well as its North American frozen foods division, which includes Morningstar Farms.
Following Monday’s share price surge, Kellanova’s market cap is now approaching $25 billion.
Before the market opened on Monday, RBC Capital Markets analyst Nik Modi upgraded his rating on Kellanova shares to “outperform,” citing the potential acquisition as a significant factor.
In recent years, food companies have seen organic sales growth slow as prices rise and consumer spending decline, making mergers and acquisitions more attractive. The acquisition of Kellanova would strengthen Mars’ snack portfolio, which currently includes brands like Kind, along with its large candy and pet food businesses.
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