Ferrero to Buy WK Kellogg for $3.1 Billion

Italian confectioner Ferrero has agreed to acquire U.S. cereal maker WK Kellogg for approximately $3.1 billion at $23 per share. The acquisition gives Ferrero control over six manufacturing plants and the marketing and distribution rights to cereals such as Corn Flakes, Froot Loops, and Frosted Flakes across North America and the Caribbean. Kellogg’s net sales fell 2% to $2.7 billion in 2024, despite a brief pandemic-related sales increase, reflecting ongoing challenges in the cereal market. Investors responded positively, with WK Kellogg's shares rising over 30% following the news. Ferrero, which has expanded in North America through previous acquisitions, plans to invest in and grow these iconic cereal brands. The deal is expected to close later this year, pending regulatory and shareholder approval.