WK Kellogg Thursday agreed to be bought by the owner of Ferrero Rocher in a deal worth around $3.1 billion, as the cereal maker has been struggling with weakening consumer demand due to persistently high inflation.
Kellogg’s shares soared nearly 50% in premarket trading Thursday after a source told Reuters the Italian candy maker behind Ferrero Rocher is nearing a deal to buy the firm, uniting two of the world’s most recognizable consumer food companies.
Shares of the Battle Creek, Michigan-based company hit $26.10, their highest level since the firm — which makes the popular Fruit Loops and Frosted Flakes — was spun off from Kellogg Company in 2023.
The Wall Street Journal was the first to report, after market closed on Wednesday, that Ferrero could finalize the roughly $3 billion deal as soon as this week.
WK Kellogg, which is valued at $2.31 billion, lowered its annual organic sales and core profit forecasts in May on the back of subdued consumer spending.
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Author: Dillon B
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