Antitrust IntelligenceAntitrust IntelligenceAntitrust Intelligence
Sign in
Notification
Font ResizerAa
  • For Lawyers
    For Lawyers
    Here, you’ll find the regulatory trends and hidden market shifts that others miss. You’ll learn where markets (and your clients’ industries) are heading—and how to…
    Show More
    Latest News
    Brussels Pressures Italy to Lift Golden Power Hurdles on UniCredit Deal
    July 11, 2025
    Lloyds, Barclays, Santander’s £6 billion Risk Hinges on July UK Supreme Court Ruling
    July 10, 2025
    Zoetis Faces Higher Risks in UK Study than EU Antitrust Probe
    July 9, 2025
    OECD List with Most and Least Competitive Industries
    July 6, 2025
  • For Investors
    For Investors
    Regulatory events move markets—often faster than earnings reports. A merger approval or a hefty fine can send a stock soaring or sinking in a day.…
    Show More
    Latest News
    Bank Pekao: On Its Way to lead Poland’s financial sector
    July 8, 2025
    Nexi: Solid Numbers With Regulatory Events as Catalysts
    July 2, 2025
    Ercros: A Risky Bet With a Good Margin is Coming to an End
    June 25, 2025
    Zalando: two upcoming regulatory events may have minor upside
    June 23, 2025
  • News
    News
    Stay informed with our global antitrust news compilation—bringing you the latest developments, regulatory updates, and key cases from around the world, all in one place
    Show More
    Latest News
    OpenAI Challenges Chrome with AI Browser Launch
    July 11, 2025
    Australia Clears Lactalis’ Acquisition of Fonterra’s Dairy Businesses
    July 11, 2025
    Italy Launches Investigation into Revolut for Alleged Unfair Commercial Practices
    July 10, 2025
    Türkiye Imposes Daily Fines on Google Over Continued Non-Compliance With Competition Order
    July 10, 2025
  • Why Join?
  • Memberships
Reading: Ferrero Nears $3 Billion Deal to Acquire WK Kellogg, Expanding U.S. Food Empire
Font ResizerAa
Antitrust IntelligenceAntitrust Intelligence
Search
  • For Lawyers
  • For Investors
  • News
  • Why Join?
  • Memberships
Have an existing account? Sign In
Follow US
kellogg
News

Ferrero Nears $3 Billion Deal to Acquire WK Kellogg, Expanding U.S. Food Empire

Editorial
Last updated: July 10, 2025 7:14 am
Editorial
Published July 10, 2025
Share
Photo by Lisa from Pexels: https://www.pexels.com/photo/rice-krispies-desert-cup-near-spoon-on-gray-counter-top-1311244/

Italian confectionery giant Ferrero is in advanced talks to acquire WK Kellogg Co., the U.S.-based cereal maker behind iconic brands such as Froot Loops and Frosted Flakes, a source familiar with the matter told Reuters. The acquisition, reportedly valued at around $3 billion, could be finalized as early as this week.

Contents
A Legacy Brand at a CrossroadsDeal Structure and Valuation

Shares of WK Kellogg surged approximately 55% in after-hours trading following The Wall Street Journal’s report on the potential transaction. The deal would mark Ferrero’s most significant move yet in its ongoing campaign to diversify its portfolio and deepen its presence in the North American market.

Ferrero, best known for Nutella, Ferrero Rocher, and Kinder, has ramped up its U.S. expansion in recent years through a series of high-profile acquisitions. Under the leadership of Executive Chairman Giovanni Ferrero, the company has acquired Nestlé’s U.S. chocolate business for $2.8 billion, bought the maker of Blue Bunny ice cream (Wells Enterprises), and secured various brands from Kellogg Company, including Keebler and Famous Amos, in a $1.3 billion transaction in 2019.

In that earlier deal, Ferrero also took over fruit snacks (e.g., Stretch Island), ice cream cones, pie crusts, and six U.S.-based manufacturing facilities, reinforcing its North American supply chain.

Now, with WK Kellogg in its sights, Ferrero appears poised to step beyond its confectionery and snack roots into the broader cereal market—one that is facing both challenges and opportunities.

A Legacy Brand at a Crossroads

WK Kellogg, which spun off from the larger Kellogg Company in 2023, has been navigating headwinds in recent quarters. Facing waning consumer demand and increased price sensitivity, the company has struggled to maintain sales momentum. Criticism over its use of artificial food dyes—particularly in products served in schools—has added to its reputational challenges. In response, WK Kellogg recently announced reformulation efforts following discussions with U.S. Health Secretary Robert F. Kennedy Jr.

Despite these difficulties, analysts say WK Kellogg’s strong brand portfolio makes it an attractive acquisition target. “For Ferrero, this deal presents an opportunity to diversify beyond confectionery and deepen its presence in the U.S. market,” said Arun Sundaram, analyst at CFRA Research.

Industry observers note that the proposed transaction would offer WK Kellogg a path forward under a well-capitalized parent known for revitalizing mature brands. Ferrero’s successful integration of acquisitions like Ferrara Candy Company and Fannie May underscores its strategic capabilities in brand development.

Deal Structure and Valuation

According to Robert Moskow, an analyst at TD Cowen, the $3 billion valuation implies a price of approximately $27.61 per share for WK Kellogg equity holders, after accounting for $570 million in net debt. WK Kellogg currently holds a market capitalization of around $1.5 billion.

The deal is expected to include key cereal trademarks and production facilities, although neither Ferrero nor WK Kellogg has issued an official comment at the time of writing. The transaction remains subject to customary regulatory approval and closing conditions.

If completed, the acquisition would mark another step in the ongoing transformation of the U.S. consumer packaged goods sector. Last year, Mars Inc. struck a $36 billion deal to acquire Kellanova—the snack and frozen food business formed from the other half of the former Kellogg Company.

As consolidation continues and global players seek growth in mature markets, Ferrero’s latest move reaffirms its ambition to become a dominant force across multiple food categories in North America.

You Might Also Like

UK’s CMA Clears Iberdrola’s Acquisition of NWEN

DOJ Wins Bid to Block American Airlines, JetBlue Alliance

UK Begins BNPL Regulation Process, with New Rules Expected in 2026

Lack of Competition Affects Poorer Households the Most, CMA reports

Unannounced Inspections by Cyprus in Fresh Meat Retail Sector

TAGGED:acquisitiondealferreroKellogg

Weekly Newsletter

Insights you can turn into money or clients
Antitrust Intelligence

About Us

We identify and quantify regulatory risks so you can take better decisions
Menu
  • Lawyers
  • Investors
  • News
  • My Bookmarks
  • About Us
  • Contact
Legals
  • Cookie Policy
  • Terms & Conditions
  • Privacy Policy

Subscribe Us

Subscribe to our newsletter to get weekly ideas to make money and get new clients!

© 2025 Antitrust Intelligence. All Rights Reserved. - Web design Málaga by Seb creativos
Antitrust Intelligence
Manage Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage {vendor_count} vendors Read more about these purposes
View preferences
{title} {title} {title}
Antitrust & Financial Markets? Download Your Free Guide NOW
Five tips to find unique regulatory intelligence
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?