Various Kellogg cereal boxes are on display on Walmart Supercenter shelf in Austin, Texas on May 6, 2025.
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Stocks WK Kellogg Chocolate maker Ferrero surged more than 50% on Wednesday following reports that it was close to a roughly $3 billion deal to buy the cereal company.
The Italian company known for Circular Haselnut Chocolates can complete this week’s acquisition of legacy breakfast foods business, the Wall Street Journal reported, citing people familiar with the issue.
WK Kellogg spun childhood staples like Froot Loop and Frost Flake into a company that became independent in 2023. KeranovaCurrently lives with snack brands such as Pringles and Cheez-It. M&M owner Mars agreed to buy Kellanova for $36 billion last year in a deal that has not yet been closed.
WK Kellogg shares fell about 2% this year, with the company having a market capitalization of around $1.5 billion.
WK Kellogg’s Ferrero acquisition will be added to the integration of packaged foods. Many American consumers have eschew sugar-like cereals in favor of breakfast options that are considered healthier, while other shoppers have moved to private label brands after inflation has skyrocketed in recent years.
The move will deepen Ferrero’s ambitions in the US market. In May, the third largest US Candy Company unveiled a slate of new products that appeal to American consumers, including Peanut Nutella and Dr. Pepperchick.
