Economic conditions & trends

Kellogg Shares Soar After Reports of Ferrero Takeover

JUL 10 2025·Updated JUL 11 2025

Story

Above: Kellogg's cereals at a grocery store in Queens, New York, in 2024. Image credit: Lindsey Nicholson/UCG/Universal Images Group/Getty images

The Facts

Shares of U.S. cereal-maker WK Kellogg soared by upwards of 50% after the Wall Street Journal and the Financial Times reported on Wednesday that Italian confectioner Ferrero was in the final phases of a takeover deal.
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According to the reporting, Ferrero, now headquartered in Luxembourg, was preparing to complete the purchase of WK Kellogg at a price of around $3.1 billion. Neither firm has publicly commented at this stage.
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Nonetheless, shares of WK Kellogg — which owns brands such as Fruit Loops and Frosted Flakes in the U.S. — were up to $26.75 in pre-market trading on Thursday, their highest price since the company split its cereals and snacks businesses in 2023.
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The snacks business, Kellanova, which makes Pringles and Pop-Tarts, as well as cereals outside of North America, was acquired by Mars for roughly $36 billion last year. While that deal was approved by the U.S. Federal Trade Commission last month, it remains subject to an antitrust investigation by the European Commission.
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Should Ferrero's deal proceed and pass similar scrutiny, it would add to its existing brands of Ferrero Rocher, Tic Tac, and Kinder. The company has been expanding its portfolio in recent years, with purchases of Wells Enterprises and Nestlé's confectionary arm in the U.S., alongside other European companies.
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Ferrero previously acquired Kellogg's cookies, fruit snacks, and ice cream cone business in the U.S. for $1.3 billion in 2019.
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The Grocer

Sources Split

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The Spin

Narrative A

This is a bold move from Ferrero that will strengthen its foothold in U.S. markets while the firm continues with its aims of expanding globally. This acquisition, if it proceeds, makes strategic sense for the company.

AInvest

Narrative B

As consumers are switching over to healthier options, convenience food firms have struggled to adjust and have seen their profits decline. This is a risky play for Ferrero.

MSN

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