The deal could allow the chocolate maker to establish a strong foothold in the US cereal market.
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Italian confectioner Ferrero said on Thursday that it would buy US cereal maker WK Kellogg for $23 per share, valuing the company at $3.1 billion (€2.6bn). That's a premium of around 31% on Kellogg's closing share price on Wednesday.
The deal could allow Italy’s Ferrero to establish a foothold in the US market and focus on healthier offerings as consumer habits change.
Kellogg, widely considered the original creator of cornflakes, owns brands like Froot Loops, Rice Krispies, and Krave.
Confectionery companies have been hit by the rise of weight-loss drugs but also pressure from the “Make America Healthy Again” movement, which is campaigning to reduce artificial dyes in cereals.
Ferrero has been expanding in recent years, buying Nestle's confectionery business and a number of other sweet makers.
The Italian firm, which owns Nutella, Thorntons, Kinder, and Tic Tac, was founded in 1946 and is still under family ownership.
Kellogg’s performance has been lacklustre in recent years after it split from its parent company, Kellanova, in 2023 — and it now holds more than $500 million (€427mn) of debt.
Kellanova is also creating its own headlines. The firm, which owns brands such as Pop-Tarts and Pringles, was bought by Mars for $36bn, a deal that is now facing an antitrust probe by European regulators.
The deal between Ferrero and WK Kellogg is set to close in the second half of 2025.