Mars is considering a bid for Pringles owner Kellanova (NYSE:K) in one of the largest snack sector deals ever seen, according to a report from Reuters citing sources close to the talks.
Kellanova currently has a value of about US $27 billion including debt, having risen by around 20% since it was spun out of Kellogg's last year.
Neither party confirmed the deal with the report suggesting other parties might be interested.
Last year, JM Smucker acquired Twinkies maker Hostess Brands for $5.6 billion, but the last major packaged food mega deal with the merger between Heinz and Kraft almost ten years ago.
Competition issues would be a major barrier with Kroger's $25 billion proposed acquisition of Albertsons facing a block broth from the FTC and Colorado over consumer impact grounds.
A deal for Kellanova by Mars would be the family-owned Snickers and Mars bar maker’s biggest takeover to date.