Kellogg In Talks To Buy Diamond Foods

BATTLE CREEK, MI -- Kellogg Co. is reportedly in negotiations to buy Diamond Foods Inc. for more than $1.5 billion. Citing sources close to the matter, business reports say Kellogg could pay $35 to $40 a share.

If a deal is reached, Kellogg would ramp up its portfolio of snack food. Stockton, CA-based Diamond Foods' brands include Kettle potato chips, Pop Secret popcorn and Emerald nuts.

Kellogg, which makes Frosted Flakes, Froot Loops and Rice Krispies, has been trying to expand its snack foods business through acquisitions and increase its international presence as sales of cereals decline in the U.S. In 2012, it bought Pringles from Procter & Gamble.