Ferrero acquires WK Kellogg for $3.1 billion, causing shares to soar 30%. The Italian company, now third-largest US candy seller, previously bought Nestlé’s US candy biz for $2.8 billion. Ferrero also brought EU brands to the US, Americanizing some products like Dr Pepper Tic Tacs and Nutella Peanut.

WK Kellogg sales fell 6% in Q1, cutting annual guidance due to weaker consumption trends. In 2023, Kellogg spun off struggling cereal biz as WK Kellogg, rebranding as Kellanova to focus on snacks. Mars buys Kellanova for $36 billion, facing antitrust scrutiny in the EU.

Regulators unlikely to challenge Ferrero’s WK Kellogg deal, citing its smaller size and limited presence in the cereal market. WK Kellogg CEO encourages Americans to eat more cereal, launching grab-and-go bags of Froot Loops and Apple Jacks and cereal bars to boost consumption outside of breakfast.

WK Kellogg’s acquisition by Ferrero brings cereal nostalgia back with the potential for Nutella-covered Froot Loops. The Italian company solidifies its position in the US candy market, acquiring WK Kellogg and other popular brands, making it a major player in the American breakfast industry.

Read more at Yahoo Finance: Ferrero Puts Snap, Crackle and Pop into Its Earnings With WK Kellogg Acquisition