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.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appKellanova (K.US), D1 interval
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
