What happened:

Shares of packaged food maker Kellanova (NYSE:K) rose 8% in morning trading after the company announced it was being acquired by M&M maker Mars in a deal valued at about $36 billion, or $83.50 per share. The acquisition price represents a 33% premium to Kellanova’s closing price on Aug. 2, 2024, when Reuters broke news of the deal.

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What does the market tell us:

Kellanova shares are not very volatile compared to the market average, having only experienced 4 swings of over 5% in the last year. In this context, today’s move suggests that the market considers this news significant, although it might not fundamentally change its perception of the company.

The last big move we covered was 9 days ago when the company gained 22.5% after the Wall Street Journal reported that Mars (known for M&Ms and Snickers) was in advanced negotiations to acquire the company (Kellanova). According to sources, “a deal could be done shortly, assuming talks do not fall through.”

Kellanova is up 38.9% year-to-date and has hit a new 52-week high of $80.20 per share. Investors who bought $1,000 worth of Kellanova stock 5 years ago would have an investment worth $1,303 today.

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