Snickers maker Mars explores acquisition of Kellanova, sources say By Reuters

(Reuters) – Household-owned meals large Mars, whose sweet manufacturers embody M&M’s and Snickers, is exploring a possible acquisition of Kellanova, maker of snacks similar to Cheez-It and Pringles, in keeping with individuals aware of the matter. 

A deal could be one of many largest ever within the packaged meals sector, given Kellanova’s market worth of $22 billion, and check the urge for food of U.S. regulators to permit consolidation within the sector. 

Shares of Kellanova are up about 20% because it was spun off from Kellogg (NYSE:) Co final October however are nonetheless buying and selling at a reduction to a few of its friends, similar to Hershey and Mondelez (NASDAQ:) Worldwide, making it a possible acquisition goal. 

There is no such thing as a certainty that Kellanova will interact and pursue a take care of Mars, the sources mentioned. One other suitor may additionally method Kellanova, and it is attainable that no take care of any get together is reached, the sources added, requesting anonymity as a result of the matter is confidential.

Kellanova declined to remark, whereas spokespeople for Mars didn’t instantly reply to requests for remark.

Dealmaking within the packaged meals sector has been strong as corporations search scale to climate the influence of worth inflation and drug-loss medication weighing on demand. However lots of the offers have been smaller than the mega merger between Heinz and Kraft clinched nearly a decade in the past, as U.S. antitrust regulators have turn into extra involved in regards to the influence of huge offers on shoppers. 

Kellanova focuses on snacks, similar to crackers, toaster pastries and cereal bars, in addition to comfort meals similar to ready-to-eat cereals, frozen waffles, veggie meals and noodles. It makes its merchandise in 21 nations and markets them in additional than 180 nations. 

A family-owned enterprise, Mars’ client merchandise embody snacks and pet meals. It additionally runs veterinary care facilities and has a veterinary diagnostics enterprise .