.August 5, 2024 2:19:00 PM

Shares of Kellanova (NYSE:K) jumped 14% after reports of Mars considering acquiring the snack maker, making it one of the largest deals in the packaged food sector. Kellanova’s market value is around $27 billion, attracting interest due to its discounted trading compared to industry peers like Hershey and Mondelez International.

While the acquisition is not guaranteed, sources caution that other buyers could emerge or no agreement may be reached. The potential deal reflects the trend of mergers and acquisitions in the packaged food industry as companies aim to grow and combat price inflation.

If Mars acquires Kellanova, it would be the largest purchase ever for the family-owned food giant, surpassing its $9.1 billion acquisition of VCA in 2017.