Investing.com — Mars, best known for its namesake chocolate and brands like Snickers, is willing to pay $83.50 for each share of packaged food maker Kellanova (NYSE:), the Wall Street Journal reported Tuesday.
This figure represents a 12% premium to Kellanova’s closing price on Tuesday, while valuing the company at more than $30 billion.
Kellanova shares rose more than 7% in premarket trading on Wednesday.
According to Jefferies analysts, a Kellanova deal “speaks to Mars’ snack ambitions.”
“By our calculations, a Kellanova acquisition would increase Mars’ global and US snacking businesses by ~40% and ~60%, respectively,” they noted.
Additionally, it would also “boost Mars’ capabilities in salty, sweet, savory and baked snacks, which in turn would create years of potential for revenue synergies across categories and brands.”
Reuters had reported earlier in August that Mars was considering a takeover of the company, which would likely be the largest packaged food deal.
But the deal could also trigger antitrust scrutiny, given the similarities in the products offered by both companies, as well as their huge respective market shares.
Mars is one of the largest private companies in the world and owns several popular candy and packaged food brands. Kellanova was split off W. K. Kellogg Co (NYSE:) last October.
