1. News
  2. BUSSİNES
  3. Ferrero Eyes $3B Deal for WK Kellogg, Shares Surge!

Ferrero Eyes $3B Deal for WK Kellogg, Shares Surge!

featured
Share

Share This Post

or copy the link

Shares of WK Kellogg surged over 50% on Wednesday, propelled by news that the renowned Italian confectionery company Ferrero is nearing a $3 billion acquisition deal for the cereal manufacturer.

The Wall Street Journal reported that a final agreement could be reached as early as this week, citing sources with knowledge of the negotiations.

WK Kellogg, producer of popular children’s cereals like Froot Loops and Frosted Flakes, became an independent entity in 2023. A separate publicly traded firm, Kellanova, now manages snack products, including Pringles and Cheez-It. Notably, Mars, which owns M&M’s, has agreed to acquire Kellanova for $36 billion, although the transaction is still pending completion.

This year, WK Kellogg’s shares have experienced a decline of about 2%, resulting in a market capitalization of approximately $1.5 billion.

A potential acquisition by Ferrero would contribute to an ongoing trend of consolidation within the packaged foods industry. Consumer preferences have shifted away from sugary cereals toward healthier breakfast alternatives, while many have opted for private label brands in response to rising inflation over recent years.

For Ferrero, this acquisition would enhance its growth strategy in the U.S. market. The company, which ranks as the third-largest candy manufacturer in the nation, recently introduced an array of new products aimed at American consumers, including variations of peanut Nutella and Dr Pepper-flavored Tic Tacs.

0
be_endim
Beğendim
0
dikkatimi_ekti
Dikkatimi Çekti
0
do_ru_bilgi
Doğru Bilgi
0
e_siz_bilgi
Eşsiz Bilgi
0
alk_l_yorum
Alkışlıyorum
0
sevdim
Sevdim

Your email address will not be published. Required fields are marked *

Login

To enjoy Finance Newso privileges, log in or create an account now, and it's completely free!