Kellogg Shares Surge Amid Reports of $3 Billion Takeover Talks with Ferrero
Shares of WK Kellogg Co soared on Wednesday following reports that Italian confectionery giant Ferrero is in advanced talks to acquire the U.S. breakfast cereal maker in a deal estimated at around $3 billion.
According to sources cited by The Wall Street Journal and Financial Times, the deal could be finalised as early as this week. If successful, the acquisition would give Ferrero – a company best known for global brands such as Ferrero Rocher, Kinder, and Tic Tac – a commanding foothold in the U.S. breakfast cereal market.
WK Kellogg, which produces iconic North American cereals like Corn Flakes, Froot Loops, and Rice Krispies, has been grappling with financial challenges. The company carries more than $500 million in debt and was spun off in 2023 from its former parent company’s international and snacks division, now operating as Kellanova. The newly separated WK Kellogg has since struggled to keep pace in an evolving market where consumers are shifting toward healthier food options.
News of the potential acquisition sent WK Kellogg’s shares surging by over 56% in after-hours trading on the New York Stock Exchange, pushing its value far beyond its previous $1.5 billion market capitalisation.
Ferrero, founded in 1946, has steadily expanded its global portfolio in recent years through acquisitions, including its 2018 purchase of Nestlé’s U.S. candy business. A successful Kellogg deal would mark Ferrero’s most significant move into the breakfast category.
The broader food industry has faced mounting pressures, from rising production costs to shifting consumer tastes. In the U.S., convenience food companies have also come under increased regulatory scrutiny, including from the Trump administration, which is currently targeting artificial food colouring through its “Make America Healthy Again” initiative.
WK Kellogg has pledged to remove synthetic colours from cereals served in schools by the 2026–27 academic year, though a broader timeline for retail products remains unclear.
Both WK Kellogg and Ferrero have declined to comment publicly on the reported takeover discussions.
