Investing.com– Non-public packaged meals large Mars Inc, finest identified for its eponymous bar and different manufacturers akin to Snickers and M&M’s, is contemplating a possible acquisition of Pringles maker Kellanova (NYSE:), Reuters reported on Sunday.
Such a deal could possibly be one of many largest within the meals trade, given Kellanova has a market capitalization of about $27 billion, though there isn’t a assure that Mars will proceed with the deal, the Reuters report confirmed.
The merger may additionally laborious for regulators to abdomen over antitrust considerations, provided that each corporations management a number of main manufacturers within the packaged meals sector.
Kellanova was spun off from WK Kellogg Co (NYSE:) final October, with its shares buying and selling up 20%. However they’re nonetheless seen buying and selling at a reduction to friends akin to Hershey Co (NYSE:) and Mondelez Worldwide Inc (NASDAQ:).
Earlier this 12 months Reuters reported funding agency TOMS Capital had taken an undisclosed stake in Kellanova, and was in discussions to enhance shareholder returns.
Mars is among the largest privately-owned corporations on the earth, and is managed by the Mars household. Its acquisition of Kellanova could possibly be the agency’s largest deal since its $9.1 billion takeover of veterinary hospital chain VCA in 2017.