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Mars, a food giant known for brands like M&M's and Snickers, is reportedly exploring a potential acquisition of Kellanova, the maker of Cheez-It and Pringles.

Reuters report that if the acquisition goes through, it would be one of the largest in the packaged food sector, given Kellanova's market value of approximately $27 billion, including debt. It would also test the appetite of regulators to allow consolidation in the sector.

Since splitting from WK Kellogg Co last October, Kellanova's shares have risen by about 20%. However, the stock is still trading at a discount compared to some of its competitors, such as Hershey and Mondelez International, making Kellanova a potential acquisition target, said Reuters.

There is no certainty that Mars will finalise a deal with Kellanova, and other companies could also express interest. The sources, who requested anonymity due to the confidentiality of the situation, noted that no agreement has been reached.

When reached by FoodBev, Kellanova's spokeswoman, Kris Bahner, said: "By company policy, we don't comment on market speculation".

FoodBev has also reached out to Mars for a comment.

In March 2023, Kellogg announced that its global snack brand would change to be named Kellanova.

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