Mars exploring acquisition of Pringles owner Kellanova - report

Reuters cited people familiar with the matter as saying there is no certainty that Kellanova will pursue a deal.

They also said that another suitor could approach Kellanova, and it's possible that no deal with any party is reached.

A deal would be one of the biggest ever in the packaged food sector, given Kellanova's market value of about $27bn including debt, and test the appetite of regulators to allow consolidation in the sector.

A deal for Kellanova would be the biggest ever for Mars, dwarfing its $9.1bn takeover of veterinary hospital operator VCA in 2017, Reuters said.

The Virginia-based company has been seeking to diversify its business through acquisitions. It is owned by its founder Frank C. Mars’ descendants and generates about $47bn in annual sales. It operates under three divisions; Mars Petcare, Mars Snacking, and Mars Food & Nutrition.

Kellanova makes its products in 21 countries and markets them in more than 180 countries. Its separation from WK Kellogg last year left Kellanova with snacks, such as Pop-Tarts and Rice Krispies Treats, frozen breakfast foods, such as Morningstar Farms and Eggo, and an international cereal division.

Reuters reported in May that investment firm TOMS Capital Investment Management had taken a stake in Kellanova and was discussing with the company how it can improve shareholder returns. The details of the discussions between TOMS and Kellanova could not be learned.