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Ferrero reportedly will buy Kellogg for $3 billion

The Journal reported that WK Kellogg shareholders will receive $23 per share in cash—representing a premium of roughly 40% over recent trading levels. Including debt, the transaction gives WK Kellogg a total enterprise value of about $3.1 billion.

NEW YORK — Ferrero Group, the Italian confectionery giant known for Nutella and Ferrero Rocher, is reportedly acquiring WK Kellogg Co. in a deal valued at approximately $3 billion, according to The Wall Street Journal. The agreement marks another major step in Ferrero’s strategy to expand its presence in the North American packaged food market.

The Journal reported that the family-owned Ferrero confirmed the acquisition on Thursday, with Kellogg shareholders set to receive $23 per share in cash—representing a premium of roughly 40% over recent trading levels. Including debt, the transaction gives Kellogg a total enterprise value of about $3.1 billion.

Kellogg shares surged more than 50% in after-hours trading following the Journal’s initial report.

The deal brings together two legacy food companies from opposite sides of the Atlantic. Kellogg, a household name in the U.S. breakfast aisle, is best known for iconic cereal brands such as Frosted Flakes, Froot Loops, Rice Krispies, and Corn Flakes—the latter invented in 1894 by company founder Will Keith Kellogg. The cereal business was spun off from Kellogg Co. in 2023, with the remaining snacking business rebranded as Kellanova.

Ferrero, founded nearly 80 years ago in Alba, Italy, has grown into the world’s third-largest chocolate confectionery company, operating more than 35 brands in over 170 countries. Its portfolio includes Kinder, Tic Tac, Butterfinger, and Baby Ruth, among others. The company reported €18.4 billion (approximately $21.5 billion) in revenue for its most recent fiscal year, a 9% increase driven by strength in both the U.S. and Italian markets.

The acquisition would mark Ferrero’s latest strategic move to diversify its offerings and deepen its U.S. footprint. In recent years, Ferrero has snapped up several American brands, including Nestlé’s U.S. chocolate business in a $2.8 billion deal and Wells Enterprises, the maker of Blue Bunny ice cream.

The transaction comes amid shifting consumer trends, as U.S. shoppers contend with higher grocery prices and increasing demand for health-conscious food options. Kellogg has faced scrutiny in this changing landscape, particularly for its continued use of artificial food dyes—an issue that gained renewed attention after Robert F. Kennedy Jr., a vocal critic of synthetic additives, was appointed U.S. health secretary.

The snacking and packaged foods industry has seen a flurry of M&A activity in recent months, including PepsiCo’s acquisition of Siete Foods, J.M. Smucker’s purchase of Hostess Brands, and Hershey’s deal for LesserEvil, a better-for-you popcorn brand.

If finalized, the merger would represent a high-profile transatlantic pairing—and a bold bet on the enduring power of trusted grocery brands in a rapidly evolving food retail landscape.

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