A Kellanova (K) sign outside the New York Stock Exchange (NYSE) on September 5, 2023 in New York City.
Associated Press
shares Kelanova The company rose 13% in early trading Monday on reports of takeover interest.
M&M owner Mars is in talks to acquire the snack company, adding rival candy company to the mix, CNBC’s David Faber reports Hershey’s There may also be interest in acquiring the company.
Kellanova spokesperson Kris Bahner declined to comment to CNBC, citing company policy. Reuters first reported Mars interests.
Ten months ago, Kellogg’s spin-off Its cereal business, names new company WK Kellogg in memory of its founder. The remaining business units, renamed Kellanova, include Pringles and Cheez-It, as well as its North American frozen foods division, which includes Morningstar Farms.
Including Monday’s share price action, Kellanova’s market value is nearly $25 billion.
RBC Capital Markets analyst Nik Modi upgraded Kellanova shares to outperform before Monday’s open, citing a potential deal as a catalyst.
After several years of price increases, food companies’ organic sales growth has slowed as consumers spend less, making acquisitions more attractive.
Purchasing Kellanova will also enhance Mars’ snack selection. While the family-owned company has large candy and pet businesses, it only has a few brands, such as Kind, in its snack portfolio.
