Ferrero acquires Kellogg for $3.1B, reshaping cereal market

Ferrero has acquired WK Kellogg for $3.1 billion, offering shelf space for iconic cereals like Froot Loops and Frosted Flakes. The deal at $23 per share represents a 31% premium over Kellogg’s closing price, with shares jumping 30.6% on the announcement. The merger combines Nutella and cereal brands, with plans for integration and competitive responses from peers like Smucker and Kraft Heinz. Ferrero aims to capitalize on U.S. distribution networks and drive cost efficiencies while navigating regulatory approvals and market challenges. This acquisition reflects a trend of consolidation in the face of cost pressures and changing consumer preferences.

Read more at Quiver Quantitative: How Ferrero’s $3.1B Kellogg (K) Deal Reshapes the Cereal Aisle