Shares of Kellanova closed up 16% on Monday on reports of buyout interest.
M&M’s owner Mars is in talks to acquire the snacking company, CNBC’s David Faber reported, adding rival candy company Hershey is also potentially interested in buying the company.
Kellanova spokesperson Kris Bahner declined to comment to CNBC, citing company policy. Reuters first reported the Mars interest.
Ten months ago, Kellogg spun off its cereal business, naming the new company WK Kellogg in honor of its founder. The remaining business unit, renamed Kellanova, contained Pringles and Cheez-It and its North American frozen food 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 shares to outperform before the markets opened on Monday, citing the potential deal as a catalyst.
After several years of raising prices, organic sales growth for food companies has slowed as consumers pull back their spending, making acquisitions more attractive.
Buying Kellanova would also strengthen Mars’ snacking options. While the family-owned company has large confectionary and pet businesses, its snacking portfolio has just a few brands, such as Kind.