Ferrero Acquire Kellogg: In a major shake-up of the global food and snacking industry, Ferrero Group, the Italian confectionery giant known for Nutella, Kinder, and Ferrero Rocher, has agreed to acquire WK Kellogg Co. in a $3.1 billion all-cash deal, marking one of the biggest food acquisitions of the year.
Consumer Slowdown Drives Strategic Deals
WK Kellogg, which was recently spun off from its parent company Kellanova, has been facing declining demand due to persistently high inflation and changing consumer tastes. Shoppers are gradually shifting away from traditional cereals to healthier and protein-rich breakfast options.
To counter the slowdown, Ferrero is stepping in with a $23-per-share offer, representing a 31% premium over Kellogg’s last closing price. Following the news, shares of WK Kellogg surged 30.4%, trading at $22.84 during Thursday’s early session.
What’s in the Bowl? A Blend of Iconic Brands
The acquisition will bring together household cereal favorites like Frosted Flakes, Special K, and Froot Loops, along with Ferrero’s existing sweets empire, which includes Nutella, Tic Tac, and Kinder Joy. This marks Ferrero’s largest acquisition (Ferrero Acquire Kellogg) in recent years, as the company looks to expand its breakfast and snacking portfolio in North America.
The deal also reflects a growing trend in the food industry: mergers and acquisitions to offset sluggish sales, rising input costs, and evolving dietary trends. Brands are looking for scale and innovation to stay competitive in an increasingly health-conscious market.
Timeline and Industry Buzz
The transaction is expected to be completed in the second half of 2025, pending regulatory approvals. Meanwhile, industry insiders are also watching Kellanova, WK Kellogg’s former parent, as it is reportedly being acquired by Mars Inc. in a massive $36 billion deal.
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