US cereal giant Kellanova (K.US) gains almost 13% today, as private snack giant, Mars explores Kellanova acquisition in a deal priced at $27 billion, according to Reuters reports. As for now, Kellogg market cap is $24 billion. As for now, the deal is still uncertain. Both companies declined to comment to market reports. During the last years Mars was very active to M&A deals, especially in pet-food companies, but Kellanova focuses on snacks production, such as popular Pringles.
Wall Street points that Kelloanova is still priced with a discount to Hershey's and Mondelez, which may trigger a potential acquisition. US food prices risen 25% since 2019 to 2023, signalling a 'growth potential'. As for now, deflationary effects and still unknown effects of weigh loss drug supplementation may be a signal for a higher discount-searching from the M&A funds and companies, sitting on the cash piles.ย