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In a potential blockbuster deal that could reshape the global snack food landscape, Mars Inc. is reportedly exploring a $30 billion acquisition of Kellanova (NYSE: K).

The family-owned confectionery giant, known for brands like M&M’s and Snickers, is in discussions to purchase the snack food company that was recently spun off from Kellogg. The news has sent Kellanova’s stock soaring, with shares up over 14% in early trading.

Mars Inc. Reported to Explore Potential $30 Billion Buyout

Mars, which generates approximately $47 billion in annual sales, is eyeing Kellanova and its portfolio of popular brands including Cheez-It, Pringles, and Pop-Tarts.

The acquisition, if completed, would be one of the largest ever in the packaged food sector and Mars’ biggest deal to date, surpassing its $9.1 billion takeover of VCA in 2017. Sources familiar with the matter suggest that discussions are ongoing and a deal could be announced “imminently,” though they caution that nothing is certain and another suitor could potentially emerge.

The proposed merger would significantly expand Mars’ presence in the snack food market, diversifying its portfolio beyond candy and pet care.

For Kellanova, the acquisition could provide resources for growth and innovation. The combined entity would hold a stronger position in the global snack market, potentially better equipped to navigate challenges such as inflation and evolving consumer preferences.

Kellanova Stock Surges Despite Broader Market Trends

Kellanova’s stock has responded dramatically to the acquisition rumors. As of 10:09 AM EDT, the stock was trading at $72.07, up $9.09 or 14.43% from the previous close.

This surge has pushed Kellanova’s market capitalization to $24.645 billion, with the stock now trading above its one-year target estimate of $72.00.

The company’s financial metrics reflect its strong market position, with a price-to-earnings ratio of 25.09 and earnings per share of $2.51. Kellanova also offers a forward dividend yield of 3.27%. The stock’s performance has been robust, with year-to-date returns of 31.30%, significantly outpacing the S&P 500’s 8.75% gain over the same period.

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