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KEY TAKEAWAYS
- Kellanova shares are jumping 19% in premarket trading Monday on a report that candy giant Mars is in advanced talks to buy the maker of Pop-Tarts and Pringles.
- According to The Wall Street Journal, a deal could be imminent and would value Kellanova at around $30 billion in one of this year’s biggest M&A transactions.
- Reuters was the first to report on the potential deal.
Kellanova (K) shares are jumping 19% in premarket trading Monday on a report that candy giant Mars is in advanced talks to buy the maker of Pop-Tarts and Pringles.
According to The Wall Street Journal, a deal could be imminent and would value Kellanova at around $30 billion in one of this year’s biggest M&A transactions.
Reuters was the first to report on the potential deal.
Kellanova Was Spun Off From Kellogg Last Year
Kellanova was spun out of Kellogg last year and is focused on snacks and other foods, while WK Kellogg (KLG) houses the traditional Kellogg cereal brands, such as Corn Flakes and Fruit Loops.
At the market close Friday, Kellanova’s market value was around $22 billion.
If the deal is struck, it would mark one of the largest M&A deals of the year and biggest in the packaged foods sector ever. Last September, J.M. Smucker (SJM) agreed to buy Hostess Brands (TWNK), the maker of Twinkies, for $5.6 billion, including $900 million in debt.
Last week, Kellanova reported better-than-expected second-quarter results and raised its guidance, boosted by North and Latin American demand.
Kellanova shares were up 19% to $75.00 about 30 minutes before the opening bell and have surged about 29% since Wednesday’s close.