Nutella maker Ferrero plans to buy WK Kellogg for $3 billion
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WK Kellogg and Ferrero did not immediately respond to BBC requests for comment. WK Kellogg's shares surged by more than 56% in extended trading in New York on Wednesday after the reports. The deal could be worth double the firm's $1.5bn stock market value when ordinary trading ended.
Shares of WK Kellogg ( KLG) surged 30% Thursday as the maker of Froot Loops and Frosted Flakes announced it had reached a deal to be acquired by Italian sweets company The Ferrero Group for $23 per share in cash, or about $3.1 billion.
Ferrero announced it has officially acquired WK Kellogg Co, the branch of Kellogg that makes all of the brand’s cereals, for $23 dollars a share.
Shares of WK Kellogg soared following a report by The Wall Street Journal that Italian candy maker Ferrero is nearing a $3 billion deal to buy the cereal conglomerate. WK Kellogg stock was up 52%, at $26.53, after hours. Shares closed the market down slightly year-to-date.