Kellanova stock surges on rumors of possible acquisition by Mars, the parent company of M&M's.

• According to CNBC's David Faber, Mars is in discussions to acquire Kellanova, the parent company of Pringles, Cheez-Its, and Morningstar Farms.
• Kellogg split its snacking and cereal businesses into two separate companies recently.
• Kellanova has a market value of nearly $25 billion.

Reports of buyout interest caused shares to climb 13% in morning trading Monday.

Mars, the owner of M&M's, is in talks to acquire CNBC's David Faber reported, and a rival candy company is also potentially interested in buying the company.

Kris Bahner, a spokesperson for Kellanova, refused to provide a comment to CNBC regarding the company's policy. The initial report about Mars interest was first published by Reuters.

Kellogg spun off its cereal business ten months ago and named the new company after its founder. The remaining business unit, now known as Kellanova, includes Pringles, Cheez-It, and its North American frozen food unit, which houses Morningstar Farms.

Nearly $25 billion is the market value of Kellanova, including Monday's stock move.

Kellanova shares were upgraded to outperform by RBC Capital Markets analyst Nik Modi, who cited the potential deal as a catalyst.

Organic sales growth for food companies has slowed after several years of raising prices, prompting consumers to reduce their spending. As a result, acquisitions have become more appealing.

Mars' snacking options would be further enhanced by purchasing Kellanova, despite the company's strong confectionery and pet businesses, having only a limited number of snacking brands, such as Kind.