Investing.com– Mars, best known for its eponymous chocolate and brands such as Snickers, is looking to pay $83.50 for each share in packaged foods maker Kellanova (NYSE:), the Wall Street Journal reported on Tuesday.
The figure represents a 12% premium to Kellanova’s close on Tuesday, while valuing the firm at over $30 billion.
Kellanova shares jumped more than 7% in premarket trading Wednesday.
According to Jefferies analysts, a Kellanova deal “speaks to Mars snacking ambitions.”
“By our math, a Kellanova acquisition would increase Mars’ global and U.S. snacking businesses by ~40% and ~60%, respectively,” they noted.
In addition, it would also “increase Mars’s capabilities across salty, sweet, savory, and baked snacks, in turn driving years of revenue synergy potential across categories and brands.”
Reuters had reported earlier in August that Mars was considering a takeover of the firm, which is likely to be the biggest deal seen in the packaged food space.
But the deal may also attract antitrust scrutiny, given the similarities in the products offered by both companies, as well as their vast, respective market shares.
Mars is one of the biggest private companies in the world, and owns several popular candy and packaged food brands. Kellanova was spun off from WK Kellogg Co (NYSE:) last October.
