The Italian company Ferrero, known for its iconic Ferrero Rocher and Nutella brands, is reportedly nearing a deal to acquire cereal manufacturer WK Kellogg. The transaction is expected to be valued around three billion dollars (approximately 2.5 billion euros).
While the agreement is not yet official, it is said to be imminent. This was earlier reported by the Wall Street Journal, which caused WK Kellogg’s shares to soar by 55%.
The prospective deal’s value, around three billion dollars, was also disclosed by the American newspaper, anticipating that it could be finalized this week.
WK Kellogg currently has a market valuation of about 1.5 billion dollars.
A news agency attempted to contact both companies for their reactions to the report but received no response from either side.
If the acquisition proceeds, it could be a strategic move for Ferrero to expand its presence in the U.S., as the company has acquired several brands there in recent years.
The news agency highlights Ferrero’s previous acquisitions, including the purchase of Wells Enterprises, an ice cream manufacturer, and a 2.8-billion-dollar deal to acquire Nestle’s U.S. confectionery business.
Ferrero already operates 15 factories and warehouses across the United States, Canada, and the Caribbean, employing over 5,100 workers.
The formation of WK Kellogg followed the 2023 division of Kellogg’s cereal unit, and the company has been struggling with declining demand and sales.
The other division, known as Kellanova, retained the snacks segment, including brands like Pringles, and was sold to Mars last year.
“Portugal is an atypical Latin country for chocolate consumption”
In a 2023 interview, Franco Martino, the communications director of the Ferrero Group, disclosed that some Ferrero products reach the “highest per capita consumption levels in the world in Portugal.”
During the interview, the communications director emphasized the company’s commitment to sustainability and highlighted ongoing progress in this area.
Regarding the market’s imitation products, Franco Martino attributed them to “speculative economics” and confidently stated, “Our products will continue to be iconic, regardless of the year, generation after generation.”
