Shares in the US maker of Kellogg's Corn Flakes have soared after reports that chocolate giant Ferrero is close to buying the firm for about $3bn (£2.2bn). A takeover deal for WK Kellogg, which makes the Froot Loops and Rice Krispies breakfast cereals for the North American market, could come as soon as this week, the Wall Street Journal and Financial Times reported. The Italian owner of the Ferrero Rocher, Kinder and TicTac brands has been expanding in recent years, buying Nestle's confectionery business and several other food firms. 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. It would see Ferrero taking a dominant position in the US breakfast cereal market. Founded in 1946, the Italian firm is one of the biggest players in the chocolate market, with more than 30 brands sold globally. WK Kellogg has been struggling financially in recent years and has more than $500m of debt. In 2023, the US breakfast cereals operation was split off from its former parent company's international and snacks business, which was renamed Kellanova.
BBQ - What issues might occur following the takeover?
