Signage for Kellanova outside the New York Stock Exchange on Sept. 5, 2023.APShares of Kellanova closed up 16% on Monday on reports of buyout interest.M&M’s owner Mars is in talks to acquire the snacking company, CNBC’s David Faber reported, adding rival candy company Hershey is also potentially interested in buying the company.Kellanova spokesperson Kris Bahner declined to comment to CNBC, citing company policy. Reuters first reported the Mars interest.Ten months ago, Kellogg spun off its cereal business, naming the new company WK Kellogg in honor of its founder. The remaining business unit, renamed Kellanova, contained Pringles and Cheez-It and its North American frozen food unit, which includes Morningstar Farms.Including Monday’s stock move, Kellanova has a market value of nearly $25 billion.RBC Capital Markets analyst Nik Modi upgraded Kellanova shares to outperform before the markets opened on Monday, citing the potential deal as a catalyst.After several years of raising prices, organic sales growth for food companies has slowed as consumers pull back their spending, making acquisitions more attractive.Buying Kellanova would also strengthen Mars’ snacking options. While the family-owned company has large confectionary and pet businesses, its snacking portfolio has just a few brands, such as Kind.Don’t miss these insights from CNBC PRO
Kellanova stock climbs on reports of potential sale to M&M’s owner Mars
Related Posts
EU threatens Apple with fines if it doesn’t open up highly guarded iOS software to rivals
EU antitrust regulators on Thursday warned Apple to throw open its fiercely-guarded proprietary software to rivals — or risk the prospect of major fines from. The European Commission launched so-called specification…
European Union moves to compel Apple to open up operating system to rival tech
The European Union says it will outline steps to compel Apple to open up its iPhone and iPad operating systems to competing technologies under the bloc’s tough new digital rulebook,…