Signage for Kellanova in front of the New York Stock Exchange on September 5, 2023.
AP
Shares of Kellanova closed 16% higher on Monday amid reports of takeover interest.
M&M's owner Mars is in talks to acquire the snack company, CNBC's David Faber reported, adding that the rival candy company Hershey may also be interested in purchasing the company.
Kellanova spokesman Kris Bahner declined to comment to CNBC, citing company policy. Reuters first reported on the Mars interest.
Ten months ago, Kellogg spun off its cereal business and named the new company WK Kellogg in honor of its founder. The remaining business unit, renamed Kellanova, included Pringles and Cheez-It as well as the North American frozen food division, which includes Morningstar Farms.
Including Monday's stock movement, Kellanova has a market value of nearly $25 billion.
RBC Capital Markets analyst Nik Modi upgraded Kellanova shares to outperform ahead of markets opening on Monday, citing the potential deal as a catalyst.
After several years of rising prices, organic sales growth for food companies has slowed as consumers cut back on spending, making acquisitions more attractive.
Buying Kellanova would also strengthen Mars' snack offering. While the family-owned company produces large confectionery and pet products, its snack portfolio includes only a few brands such as Kind.
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