Ferrero Nears $3B WK Kellogg Buy; Mars Buys Kellanova

Shares of WK Kellogg surged by up to 54% after reports indicated that Ferrero is nearing a $3 billion acquisition of the U.S. cereal maker, with an announcement expected as soon as this week. WK Kellogg, which was spun off from Kellogg Co. in 2023 and owns brands like Froot Loops and Frosted Flakes, is undergoing industry changes as its sibling snack business, Kellanova, is being sold to Mars. Ferrero, known for Nutella and Ferrero Rocher, has been expanding in the U.S. through previous acquisitions of Wells Enterprises and Nestlé’s U.S. chocolate business. This potential acquisition would be Ferrero’s most significant entry into the North American breakfast market. The deal reflects broader consolidation trends in the food industry as legacy companies face shifting consumer habits and declining sales. Neither Ferrero nor WK Kellogg has commented on the reports.