Ferrero Set to Acquire WK Kellogg for $3 Billion

NEW YORK, NY — WK Kellogg Co. (NYSE: KLG) saw its shares rise by over 47% in after-hours trading on Wednesday after reports surfaced that Italian chocolate giant Ferrero is close to acquiring the US cereal maker for approximately $3 billion.

Sources cited by The Wall Street Journal indicate that the acquisition deal could be finalized within this week. Currently, WK Kellogg, the producer of well-known brands like Froot Loops and Frosted Flakes, has a market capitalization of about $1.5 billion and carries $500 million in debt.

This potential acquisition marks another significant strategic move by Ferrero as it seeks to broaden its presence in the US market. Earlier, Ferrero acquired Nestlé’s US chocolate business along with Wells Enterprises, known for its Blue Bunny ice cream brand.

Investors reacted positively to the news of the deal, driving up Kellogg’s shares significantly after the market closed.