Packing containers of varied Kellogg’s cereals are displayed on cabinets at a Walmart Supercenter on Might 6, 2025 in Austin, Texas.
Brandon Bell | Getty Photos
Shares of WK Kellogg soared greater than 50% on Wednesday following a report that chocolate maker Ferrero is near a roughly $3 billion deal to purchase the cereal firm.
The Italian firm identified for its round hazelnut sweets might finalize an acquisition of the legacy breakfast meals enterprise as quickly as this week, The Wall Road Journal reported, citing folks acquainted with the matter.
WK Kellogg, which makes U.S. childhood staples equivalent to Froot Loops and Frosted Flakes, spun off right into a standalone firm in 2023. A separate publicly traded enterprise, Kellanova, now homes snack manufacturers equivalent to Pringles and Cheez-It. M&M proprietor Mars agreed to purchase Kellanova for $36 billion final yr in a deal that has not but closed.
WK Kellogg shares have fallen about 2% this yr, and the corporate has a roughly $1.5 billion market cap.
A Ferrero acquisition of WK Kellogg would add to consolidation in packaged meals. Many American customers have shunned sugary cereals in favor of breakfast choices thought-about more healthy, and different customers moved to non-public label manufacturers after inflation spiked lately.
The transfer would deepen Ferrero’s ambitions within the U.S. market. The third-largest U.S. sweet firm in Might introduced a brand new slate of merchandise to attraction to American customers, together with peanut Nutella and Dr Pepper Tic Tacs.
