Kellanova shares have soared 18% amid reports that confectionery giant Mars is exploring a potential takeover of the £17.2bn ($22bn) business.
The acquisition of Kellanova, whose portfolio includes popular grocery snacks such as Cornflakes, Coco Pops, Pop-Tarts, and Rice Krispie Treats, would be one of the biggest ever deals made in the packaged food sector.
TD Cowen analyst Robert Moskow told Reuters: “We believe that K’s portfolio of popular snack brands will fit well with Mars’ and help them expand scale in international markets.”
“At times like this when growth slows, balance sheets are relatively clean, and valuations dip, the market leaders in food tend to look more closely at big combinations to drive cost synergies.”
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He added that a bid for Kellanova “could usher in another cycle of consolidation in the packaged foods space”.
Kellanova was created following the 2023 break-up of Kellogg that separated its breakfast cereals and snacks businesses.
The acquisition of Kellanova would make it one in a series of purchases for Mars, who in 2008 forked out $23bn for chewing gum manufacturer Wrigley, while earlier this year, it bought premium chocolate brand Hotel Chocolat for £534m.
