TradingKey - According to a Wall Street Journal report, Italian confectionery giant Ferrero, the world’s third-largest chocolate and candy company, is close to finalizing a deal to acquire U.S. breakfast cereal brand WK Kellogg for around $3 billion. The news sent WK Kellogg shares up over 60% in after-hours trading on July 9.
WK Kellogg Stock Price, Source: TradingView
Sources indicated that the acquisition talks have progressed and could be announced as early as this week. The deal would value WK Kellogg at roughly twice its current market cap of $1.5 billion.
Since early 2025, rumors have circulated about WK Kellogg being a potential acquisition target. The company traces its legacy to Will Keith Kellogg, the inventor of corn flakes. In 2023, the original Kellogg Company split into two entities:
Under pressure from shifting consumer preferences toward healthier options and weak U.S. spending, WK Kellogg reported an 8.6% drop in Q1 sales — prompting management to revise full-year net sales guidance from a decline of 1% to 2–3%.
In contrast, Ferrero has been expanding aggressively in recent years, acquiring brands such as Blue Bunny and Wells Enterprises (ice cream) and Nestlé’s U.S. confectionery business.
The Italian firm recently reported 9% annual revenue growth across its portfolio of over 30 brands, with strong performance in both the U.S. and Italy.
Analysts believe this latest acquisition could further strengthen Ferrero’s position in the U.S. market — where it already owns popular brands like Ferrero Rocher and Nutella.