WK Kellogg agreed on Thursday to be bought by the owner of the Sweet brand Ferrero Rocher for about $ 3.1 billion, as the cereal manufacturer faces a weakening of consumer demand due to persistently high inflation.
Negotiations in the snack industry have gained pace as food brands suffer from poor sales in the wake of price increases due to higher input costs and changes in consumers’ preference for healthier options.
Ferrero offered WK Kellogg shareholders $ 23 per share, representing a 31% prize compared to the last closure of the action. The shares of the cereal manufacturer rose 30.4%, to US $ 22.84, at the opening of the trading session on Thursday.
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The agreement, which is the largest acquisition of Ferrero in recent years, brings old brands such as Nutella, Kinder, Tic Tac, Frosted Flakes, Froot Loops and Special K, for the same level.
The news agencies, including Reuters, reported on Wednesday that the candy manufacturer behind Nutella was approaching an agreement to buy WK Kellogg.
The transaction is expected to be completed in the second half of 2025.
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WK Kellogg has been dismembered from Kellanova and owns the American cereal business of Kellogg, the original matrix.
Kellanova, a Cheez-It manufacturer, is also in the process of acquisition by the Giant Mars giant in a nearly $ 36 billion business.
WK Kellogg and other packaged food companies, such as JM Smucker, Kraft Heinz and Pepsico, have registered a poor demand due to consumer caution in the US, after consistent price increases by companies trying to deal with higher input costs.
