The confectionery and pet care company Mars is reportedly in negotiations to acquire Kellanova, the New York-based company that produces, among other things, Pringles and Pop-Tarts. Kellanova was established in 2023 following the split of Kellogg and has a market capitalization of 22 billion USD. The company's shares rose by 16.2 percent to 73.20 USD on Monday.

Kellanova owns snack brands such as Pringles, Cheez-Its, and Rice Krispies Treats. The family-run company Mars is one of the largest privately held companies with an annual revenue of over 50 billion US dollars and more than 150,000 employees worldwide.

The potential acquisition comes at a time when consumers are cutting their spending after several years of inflation, which has driven prices for many staples above pre-pandemic levels. Mars has previously relied on acquisitions to fuel growth, including the purchase of the VCA group of 800 veterinary clinics for $9.1 billion in 2017 and the $23 billion acquisition of gum and snack manufacturer Wm Wrigley Jr. in 2008. Earlier this year, Mars acquired the British premium chocolate manufacturer Hotel Chocolat for £534 million.

The acquisition of Kellanova would be one of the largest transactions in the food sector in recent years. A purchase price for the potential takeover could not be immediately determined. News about the possible negotiations was first reported by Reuters. Kellanova declined to comment, and Mars did not immediately respond to requests for comment.

Kellanova has so far weathered the downturn in consumer spending in the USA well. Last week, the company raised its revenue forecast for the full year after the latest quarterly results exceeded expectations. Kellanova's shares have already risen by about 15 percent this year.

Robert Moskow, analyst at TD Cowen, said that an offer for Kellanova "could usher in a new wave of consolidation in the packaged food sector," similar to the period between 1999 and 2001, when General Mills acquired Pillsbury and Kraft acquired Nabisco. "In times like these, when growth slows, balance sheets are relatively clean, and valuations fall, market leaders in the food sector tend to look more closely at large combinations to achieve cost synergies," Moskow noted.

Mergers and acquisitions have increased again worldwide, reaching a value of $1.5 trillion in the first half of 2024. The total value of transactions rose by about one-fifth, driven by a surge in transactions valued at over $10 billion.