Ferrero International SA is reportedly close to acquiring WK Kellogg Co. for around $3 billion, with talks being advanced. Kellogg’s shares increased by 54% in after-hours trading following news of the impending deal. Kellogg has struggled to increase growth, adjusting its organic sales outlook downwards by 3%. The 2023 corporate split established WK Kellogg for cereal brands, while Kellanova represents the snacking sector. Ferrero, known for brands like Nutella, has previously acquired brands, including those from Kellogg, as part of its strategy to enhance its product portfolio.
Shares of Kellogg surged as much as 54% in post-market trading after the Wall Street Journal reported earlier on Wednesday that the two companies are nearing a deal.
Kellogg, owner of cereal brands Froot Loops and Frosted Flakes, has been struggling to revive growth as consumers move away from sugary foods.
Ferrero has selectively bought brands, including from Kellogg before the separation, to bulk up its portfolio.
In 2023 Kellogg Company split into two separate entities with its snacking business under Kellanova and its cereal brands under WK Kellogg.
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