Kellanova signage outside the New York Stock Exchange on September 5, 2023.
AP
Actions of Kellanova rose 13% in morning trading on Monday on reports of buying interest.
M&M's owner Mars is in talks to acquire the snack company, CNBC's David Faber reported, adding that the rival candy company Hershey He is also potentially interested in buying the company.
Kellanova spokesman Kris Bahner declined to comment to CNBC, citing company policy. Reuters was first to report the interest in Mars.
Ten months ago, Kellogg spun off its cereal business and named the new company Kellogg's Easter in honor of its founder. The remaining business unit, renamed Kellanova, included Pringles and Cheez-It and its North American frozen foods unit, which includes Morningstar Farms.
Including Monday's stock move, Kellanova has a market value of nearly $25 billion.
RBC Capital Markets analyst Nik Modi upgraded Kellanova's stock to outperform ahead of the opening of trading on Monday, citing the potential deal as a catalyst.
After several years of rising prices, organic sales growth at food companies has slowed as consumers cut back on spending, making acquisitions more attractive.
The Kellanova purchase would also bolster Mars' snacking offerings. While the family-owned company has large candy and pet products businesses, its snacks portfolio features only a few brands, such as Kind.
