Ferrero’s £2.3 Billion Takeover of WK Kellogg: A Sweet Deal for the Breakfast Table

• Ferrero acquires WK Kellogg for £2.3 billion, expanding its US presence with iconic cereal brands like Corn Flakes and Froot Loops.
• The deal aims to blend Ferrero’s confectionery expertise with WK Kellogg’s breakfast portfolio, promising innovative products and market growth.

In a move that’s shaken up the global food scene, Italian confectionery giant Ferrero — the brand behind favourites like Nutella and Ferrero Rocher — has struck a £2.3 billion deal to acquire WK Kellogg, the American cereal maker known for classics like Corn Flakes, Froot Loops, and Rice Krispies. Announced on July 10, 2025, the deal stands to become an important step forward for Ferrero as it deepens its American presence and melds the United States breakfast-food industry with chocolate-making expertise. 

A Bold Step for Ferrero

Ferrero, still family-owned since its founding in 1946, has been making steady inroads into the North American market. “Over recent years, Ferrero has expanded its presence in North America, bringing together our well-known brands from around the world with local jewels rooted in the U.S.,” said Giovanni Ferrero, Executive Chairman of the Ferrero Group.

This £2.3 billion (€2.65 billion) acquisition reflects Ferrero’s ambition to expand beyond its famous sweets and spreads — which include Kinder, Tic Tac, and Butterfinger — into new territory. The company is paying £16.95 ($23) per share in cash, a 31% premium on WK Kellogg’s last closing price, which sent shares soaring by 30% in premarket trading.

But this isn’t just about snapping up another brand. Ferrero is gaining access to WK Kellogg’s extensive distribution network and trusted cereal names, giving it more muscle with retailers and stronger shelf space across the US, Canada, and the Caribbean.

Why WK Kellogg?

The company has been trading as WK Kellogg since 2023 after its eventual spin-off from the Kellogg Company. It has faced its share of troubles, including $570 million (over £400 million) in debt and declining sales as of May 2025. Still, its cereals remain household staples: some 70% of its sales derive from such famous brands as Frosted Flakes, Special K, and Raisin Bran.

Despite its recent struggles, WK Kellogg is still a big player in the breakfast game. Ferrero sees the potential to breathe new life into these brands. “Ferrero plans to invest in and grow WK Kellogg Co’s iconic brands,” the company shared in a statement, pointing to a broader strategy that could include cereal innovations — think Nutella-topped Rice Krispies treats or Kinder-inspired breakfast bars.

A Perfect Pairing

This isn’t just a business move — it’s a marriage of indulgence and tradition. Ferrero’s flair for rich, high-quality treats pairs nicely with WK Kellogg’s reputation for wholesome, family-orientated cereals. “Joining Ferrero provides WK Kellogg Co. with greater resources and more flexibility to grow our iconic brands in this competitive and dynamic market,” said Gary Pilnick, Chairman and CEO of WK Kellogg.

Being a private company, Ferrero enjoys much more leeway in adopting a long-term strategy than those companies that are traded publicly. This would allow Wakefield Kellogg to indulge in the complete reinvention of itself, receiving all the time and investment it might need without the sting of short-term expectations from a hostile shareholder body.

For everyday shoppers, the possibilities are exciting. Ferrero CEO Lapo Civiletti said the deal would “complement Ferrero’s existing offerings, expanding Ferrero’s presence across more consumption occasions.” Translation: your breakfast table might soon include fun new mashups of your favourite cereals and sweet spreads.

What It Means for the Industry

Ferrero’s latest move fits into a broader trend of consolidation in the food industry, as brands merge to weather rising costs and changing consumer habits. It follows Mars Inc.’s massive £28 billion ($36 billion) acquisition of Kellanova — WK Kellogg’s former parent company, which owns popular snack labels like Pringles and Cheez-It.

Analysts see Ferrero’s move as a smart way to tackle market volatility, especially with cocoa prices on the rise. Chocolate may be Ferrero’s strength, but relying too heavily on cocoa can hurt when prices spike. Cereal, by comparison, offers a more stable source of income and a chance to diversify.

What’s Next?

The deal has already received unanimous approval from WK Kellogg’s board, but it still needs to clear shareholder and regulatory checks. If all goes smoothly, the acquisition should close in the second half of 2025. Once finalised, WK Kellogg will become a wholly owned subsidiary of Ferrero, and its shares will be removed from the New York Stock Exchange.

Importantly, the W.K. Kellogg Foundation Trust and the Gund Family — who together hold over 21% of WK Kellogg stock — have already given their backing, a strong signal that the deal is on track.

For UK consumers, the impact might be felt down the road. While WK Kellogg’s core market is in North America, Ferrero’s strong distribution network could eventually bring more Kellogg cereals to British shelves, potentially transforming the breakfast aisle with new and exciting options.

A Taste of Things to Come

Ferrero’s £2.3 billion purchase of WK Kellogg isn’t just a big business move — it’s a sign of how the food industry is evolving. By pairing Ferrero’s indulgent treats with Kellogg’s trusted cereals, the two companies could shape what breakfast looks like for millions of people.

Whether you’re a Nutella-on-toast kind of person or loyal to your bowl of Frosted Flakes, this partnership hints at a future full of tasty, creative possibilities. It’s a bold move, but one that might just make mornings a little more delicious.