Ferrero: deal expected to close in second half of 2025

Ferrero: deal expected to close in second half of 2025

Ferrero, the Italian confectionery giant, is poised to close its acquisition of WK Kellogg, the U.S. breakfast cereal maker, in the second half of 2025. Reports indicate that the deal, valued at approximately $3 billion, is nearing completion. The acquisition would mark a significant expansion for Ferrero into the U.S. breakfast foods market.

The acquisition deal, which has been rumored since early 2025, is expected to be finalized soon. Ferrero has been actively pursuing expansion through acquisitions, including recent deals such as Fresystem in Italy, Fulfil Nutrition in the UK, and Wells Enterprises in the US. The acquisition of WK Kellogg would further bolster Ferrero's global presence and product portfolio.

WK Kellogg, which became an independent company in 2023 after spinning off from Kellogg Co, is known for its iconic cereals such as Froot Loops and Frosted Flakes. The company has faced financial difficulties, with reports suggesting that it has a significant debt load. However, the acquisition by Ferrero is seen as a strategic move to gain access to WK Kellogg's distribution networks and brand portfolio.

The acquisition is expected to be completed in the second half of 2025, pending any last-minute complications. The deal would see Ferrero's confectionery brands, such as Nutella and Ferrero Rocher, combined with WK Kellogg's cereal brands. The integration of the two companies' portfolios is expected to create synergies and reduce supply chain costs.

Investors have reacted positively to the news, with WK Kellogg shares surging following the report from The Wall Street Journal. The stock has seen significant gains, reflecting optimism about the potential benefits of the acquisition for both companies.

The deal is part of a broader trend of consolidation in the food industry, as companies seek to scale to maintain margins in the face of declining sales. The acquisition of WK Kellogg by Ferrero is seen as a high-stakes consolidation play, with significant upside potential but also risks associated with debt and secular decline in cereal sales.

For now, investors are cautiously optimistic about the deal, with many waiting for more certainty before committing. However, the stock's post-rumor surge suggests that there is significant interest in the potential benefits of the acquisition.

References:

[1] https://www.foodnavigator.com/Article/2025/07/10/ferrero-to-buy-kellogg-in-3bn-deal-say-reports/
[2] https://www.ainvest.com/news/ferrero-3-billion-bid-wk-kellogg-strategic-gamble-shrinking-cereal-market-2507/
[3] https://www.nasdaq.com/articles/wk-kellogg-shares-soar-amid-report-3-billion-ferrero-deal