Candy giant Mars considers bid for Kellanova.

Private packaged food giant Mars Inc, best known for its eponymous bar and other brands such as Snickers and M&M’s, is considering a potential acquisition of Pringles maker Kellanova (NYSE: K), Reuters reported on Sunday.

Such a deal could be one of the biggest in the food industry, given Kellanova has a market capitalization of about $27 billion, although there is no guarantee that Mars will proceed with the deal, the Reuters report showed.

“We believe a transaction would further validate the power of Kellanova’s brands and growth potential, both in North America and internationally,” said analysts at Stifel in a note.

“The transaction would be the largest packaged foods transaction since the Kraft Heinz (NASDAQ: KHC) merger,” they added.

The merger could also be hard for regulators to stomach over antitrust concerns, given that both firms control several major brands in the packaged foods sector.

Kellanova was spun off from WK Kellogg Co (NYSE: KLG) last October, with its shares trading up 20%. But they are still seen trading at a discount to peers such as Hershey Co (NYSE: HSY) and Mondelez International Inc (NASDAQ: MDLZ).

Earlier this year Reuters reported investment firm TOMS Capital had taken an undisclosed stake in Kellanova and was in discussions to improve shareholder returns. 

Mars is one of the biggest privately-owned companies in the world and is controlled by the Mars family. Its acquisition of Kellanova could be the firm’s biggest deal since its $9.1 billion takeover of veterinary hospital chain VCA in 2017.