Cereal maker WK Kellogg shares jump 50% on report of possible $3 billion deal with Ferrero
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Cereal maker WK Kellogg shares jump 50% on report of possible $3 billion deal with Ferrero

Why This Matters

The standalone cereal business WK Kellogg began trading in 2023.

July 9, 2025
08:51 PM
2 min read
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S of WK Kellogg spiked on a report that Ferrero is nearing an agreement to buy the breakfast food company for $3 billion. A deal could close as soon as this week, according to The Wall Street Journal.

WK Kellogg, which makes cereals such as Froot Loops and Frosted Flakes, spun off into a standalone company in 2023.

In this articleKLG your favorite stocksCREATE FREE ACCOUNTBoxes of various Kellogg's cereals are displayed on shelves at a Walmart Supercenter on May 6, 2025 in Austin, Texas.

Brandon Bell | Getty Imagess of WK Kellogg soared more than 50% on Wednesday ing a report that chocolate maker Ferrero is close to a roughly $3 billion deal to buy the cereal company.

The Italian company known for its circular hazelnut chocolates could finalize an acquisition of the legacy breakfast foods as soon as this week, The Wall Street Journal reported, citing people familiar with the matter.

WK Kellogg, which makes U. Childhood staples such as Froot Loops and Frosted Flakes, spun off into a standalone company in 2023.

A separate publicly traded, Kellanova, now houses snack brands such as Pringles and Cheez-It. M&M owner Mars agreed to buy Kellanova for $36 billion last year in a deal that has not yet closed.

WK Kellogg s have fallen 2% this year, and the company has a roughly $1. 5 billion market cap. A Ferrero acquisition of WK Kellogg would add to consolidation in packaged foods.

Many American consumers have shunned sugary cereals in favor of breakfast options considered healthier, and other shoppers moved to private label brands after inflation spiked in recent years.

The move would deepen Ferrero's ambitions in the U. The third-largest U.

Candy company in May announced a new slate of ducts to appeal to American consumers, including peanut Nutella and Dr Pepper Tic Tacs.

FinancialBooklet Analysis

AI-powered insights based on this specific article

Key Insights

  • Inflation data often serves as a leading indicator for consumer spending and corporate pricing power
  • Merger activity often signals industry consolidation and potential valuation re-rating for similar companies
  • Consumer sector trends provide insights into economic health and discretionary spending patterns

Questions to Consider

  • What does this inflation data suggest about consumer purchasing power and corporate margins?
  • Does this M&A activity signal industry consolidation or strategic repositioning?
  • What does this consumer sector news reveal about economic health and spending patterns?

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