Pringles maker Kellanova (NYSE:K) was one of the few risers on Wall Street today on reports that Mars is mulling a bid.
Kellanova shares jumped 18% on the Reuters report of a potential $27 billion (£21 billion) deal.
As well as Pringles, Kellonova, which was spun out of Kellogg’s last year, is best known for Pop-Tarts, Rice Krispies and Coco-Pops. The deal would be one of the biggest ever in the packaged food sector.
“We believe that Kellanova’s portfolio of popular snack brands will fit well with Mars’ and help them expand scale in international markets,” said Robert Moskow, an analyst at TD Cowen.
JM Smucker’s acquisition of Twinkies maker Hostess Brands for US$5.6 billion was the last major packaged foods deal but this would dwarf that and sparked speculation that a new round of consolidation among consumer staples firms might be on the way.
In London, shares in peers Haleon, Unilever and Reckitt Benckiser were all higher on a difficult day for global stock markets, some of which are looking to sell off parts of their businesses.
Last month, Unilever reportedly kicked off talks about a possible sale of its ice cream business, with City sources suggesting the unit could be worth around £15 billion.