Ferrero buys WK Kellogg for $3.1 bln

Ferrero, the Italian company known for Nutella, Kinder and Tic Tac brands, announced the acquisition of WK Kellogg for $3.1 billion, Reuters reports. The deal is Ferrero’s largest in recent years and will bring together popular brands such as Frosted Flakes, Froot Loops, Special K and others under one roof. Ferrero offered WK Kellogg shareholders $23 per share, a 31% premium to the closing price on Wednesday, when the company’s shares rose 30.4% to $22.84 per share.

WK Kellogg, which was spun off from Kellanova, runs Kellogg’s North American breakfast cereal business. Meanwhile, Kellanova itself could soon be acquired by confectionery giant Mars for $36 billion. Ferrero is actively expanding its influence in the global market, in particular after the acquisition of Nestle’s confectionery business in 2018 for $2.8 billion, which strengthened its position as a global company.

In the Ukrainian market, Kellogg is best known for its Pringles chips.