Kellogg Nears $3 Billion Mega Deal... Sale to Italy's Ferrero Imminent

Announcement of Negotiation Results Possible This Week
Ferrero, One of the World's Top Three Chocolate Confectionery Companies

According to a report by Bloomberg on July 9 (local time), Italian confectionery company Ferrero has entered final negotiations to acquire American cereal manufacturer WK Kellogg for approximately $3 billion (about 4.12 trillion won).

Sources say that the negotiations are progressing rapidly and an announcement could be made this week. The Wall Street Journal (WSJ) also reported that the acquisition talks could be finalized this week. Both Ferrero and WK Kellogg have not commented on the matter.

Founded in 1946, Ferrero is one of the world's top three chocolate confectionery companies, owning more than 30 brands including Ferrero Rocher, Nutella, and Kinder, and exports its products to 170 countries worldwide.

Kellogg has a history of over 100 years. Founder Will Keith Kellogg developed cornflakes in 1894 and established the company in 1906, turning it into a leading breakfast brand for Americans.

In 2023, Kellogg split its snack business into a separate entity called 'Kellanova', dividing the company into the cereal-focused 'WK Kellogg' and Kellanova.

However, WK Kellogg has posted results that fell short of expectations since the spin-off. According to the Financial Times (FT), as of March this year, its net debt amounted to $569 million.

Kellanova, which owns snack brands such as Pringles, agreed last year to be sold to Mars, the American confectionery company famous for M&M's.

The WSJ analyzed that rising food prices and a shift in consumer trends toward health consciousness are forcing companies to adjust their existing strategies.