WK Kellogg shares jump 40% on Ferrero deal report

Introduction to Kellogg’s Acquisition

Boxes of various Kellogg’s cereals are displayed on shelves at a Walmart Supercenter on May 6, 2025 in Austin, Texas.
Brandon Bell | Getty Images
Shares of WK Kellogg soared more than 50% on Wednesday following a report that chocolate maker Ferrero is close to a roughly $3 billion deal to buy the cereal company.

Background of the Deal

The Italian company known for its circular hazelnut chocolates could finalize an acquisition of the legacy breakfast foods business as soon as this week, The Wall Street Journal reported, citing people familiar with the matter.
WK Kellogg, which makes U.S. childhood staples such as Froot Loops and Frosted Flakes, spun off into a standalone company in 2023. A separate publicly traded business, 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.

Market Performance and Implications

WK Kellogg shares have fallen about 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.

Ferrero’s Ambitions in the U.S. Market

The move would deepen Ferrero’s ambitions in the U.S. market. The third-largest U.S. candy company in May announced a new slate of products to appeal to American consumers, including peanut Nutella and Dr Pepper Tic Tacs.

Conclusion

The potential acquisition of WK Kellogg by Ferrero marks a significant development in the packaged foods industry, reflecting broader trends of consolidation and shifting consumer preferences. As the deal unfolds, it will be important to watch how Ferrero integrates WK Kellogg into its portfolio and how this affects the U.S. market.

FAQs

Q: What is the reported deal value between Ferrero and WK Kellogg?

A: The reported deal value is roughly $3 billion.

Q: Why have WK Kellogg shares fallen this year?

A: WK Kellogg shares have fallen about 2% this year due to various market factors, including consumers shunning sugary cereals for healthier options and moving to private label brands after inflation spiked.

Q: What other significant deal has occurred in the snack food industry recently?

A: M&M owner Mars agreed to buy Kellanova, which houses snack brands such as Pringles and Cheez-It, for $36 billion last year, though the deal has not yet closed.

Q: What are some of the new products Ferrero has announced to appeal to American consumers?

A: Ferrero has announced a new slate of products including peanut Nutella and Dr Pepper Tic Tacs.