Ferrero Group to acquire WK Kellogg, sister company of Kellanova (NYSE:K), for $3.1 billion. Kellanova is on track to eliminate FD&C synthetic colors from all US products by 2027. The company has already made progress with 80% of its retail items and 95% of K-12 offerings free of these additives. Kellanova offers alternative meat products through its MorningStar Farms division and Incogmeato line.
Ferrero Group, an Italian family-owned candy company, is nearing a deal to acquire cereal maker WK Kellogg Co (NYSE:KLG) for approximately $3.1 billion, according to a Wall Street Journal report [1]. The acquisition, if completed, would significantly impact both companies' operations and market presence.
The acquisition is expected to close as early as this week, with WK Kellogg shares jumping 50.2% to $26.31 in pre-market trading [1]. This substantial increase reflects investor optimism about the potential synergies and growth opportunities that the merger could bring.
Kellanova, a sister company of WK Kellogg, is also set to benefit from the acquisition. Kellanova has been making significant strides in eliminating FD&C synthetic colors from its products. By 2027, the company aims to have all its US products free of these additives, with 80% of its retail items and 95% of K-12 offerings already meeting this criterion [2]. Additionally, Kellanova offers alternative meat products through its MorningStar Farms division and Incogmeato line, which could further expand its market reach.
The acquisition of WK Kellogg by Ferrero Group is part of a broader trend of consolidation in the food and beverage industry. As companies seek to expand their product portfolios and gain a competitive edge, strategic acquisitions have become increasingly common. Investors are closely monitoring the deal, as it could have implications for both WK Kellogg and Kellanova's stock prices and market positions.
References:
[1] https://www.inkl.com/news/why-wk-kellogg-shares-are-trading-higher-by-over-50-here-are-20-stocks-moving-premarket
[2] https://www.inkl.com/news/why-wk-kellogg-shares-are-trading-higher-by-over-50-here-are-20-stocks-moving-premarket
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