(Bloomberg) -- Apollo Global Management Inc.-owned packaging company Novolex is exploring a potential takeover offer for Pactiv Evergreen Inc., according to people familiar with the matter. 

Novolex is discussing a possible bid with financial advisers, the people said, asking not to be identified because the details aren’t public. No final decision has been made, the people added. 

Pactiv Evergreen rose as much as 18% on Tuesday. The stock was up 10% at 10:37 a.m. in New York, giving the company a market value of about $2.7 billion.

A representative for Apollo declined to comment, while spokespeople for Pactiv Evergreen and Novolex didn’t respond to requests for comment.

The move comes amid a spate of takeovers in the packaging sector, which is fairly fragmented and where scale can help boost profitability. Amcor Plc agreed to acquire Berry Global Group Inc. for about $8.4 billion in November, while International Paper Co. won a bidding war in April for Mondi Plc.

Pactiv Evergreen makes a wide range of food-related packaging products, including resealable sandwich bags, egg cartons and plastic cups, according to its website. Previously called Reynolds Group, it went public in 2020.

Novolex, which also makes foodservice packaging, was acquired by Apollo in 2022 from Carlyle Group Inc., which held onto a minority stake, according to a statement at the time. The transaction valued Novolex at about $6 billion, Bloomberg News reported.

--With assistance from Ryan Gould.

(Updates shares, adds context from third paragraph.)

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