WK Kellogg shares soared 49% ahead of Thursday’s opening bell in New York, after reports surfaced that Italian confectionery group Ferrero is close to acquiring the US cereal maker in a deal worth around $3 billion.
The sharp rally, which sent shares to $26, comes as Ferrero looks to unite its brand portfolio with Kellogg’s iconic brands such as Special K and Corn Flakes.
The American business was spun out from the original Kellogg Company in 2023 as a standalone North American cereal business, leaving its former parent to focus on snacks and international sales.
The company’s heritage stretches back to 1906, when W.K. Kellogg founded the cereal giant with the aim of bringing wholesome, convenient breakfast foods to American households.
Over more than a century, Kellogg’s name became synonymous with some of the world’s best-known cereals and breakfast staples.
Ferrero, meanwhile, was established in Alba, Italy, in 1946 and has grown into a global powerhouse in chocolate and confectionery.
Its product line-up includes Ferrero Rocher, Nutella, Kinder, and Tic Tac, making it one of the world’s largest sweet goods manufacturers.
The group has expanded aggressively in recent years, acquiring well-known brands including Thorntons and various US chocolate businesses.
The prospective deal would bring together two leaders in the packaged food industry at a time when WK Kellogg is contending with weaker consumer spending and recent profit warnings.
Reports, which began with a Wall Street Journal exclusive, suggest an agreement could be reached as soon as this week, cementing Ferrero’s position as a major player in the US food market.