Today's Edition
WASHINGTON (dpa)
Italian Nutella producer Ferrero is reportedly eyeing a takeover of the US company WK Kellogg, known for its breakfast cereals, in a deal worth more than $3 billion.
Production, marketing and distribution in North America and the Caribbean are to be transferred to the Italian company's portfolio, the two companies announced on Thursday.
According to Ferrero, it wants to grow in North America and expand its product range of cornflakes, frosties and other cereals - thus challenging competitors such as Nestlé and General Mills.
WK Kollegg boss Gary Pilnick also announced the prospect of new products that go beyond the breakfast range.
"We look forward to collaborating with their team to deliver on the great promise of cereal, explore opportunities beyond cereal, and help us bring our best to consumers every day," Pilnick said in a statement.
Ferrero is willing to offer $23 in cash per WK-Kellogg share for the takeover, which would correspond to a total enterprise value of $3.1 billion for the Americans.
The Kellogg Group - now Kellanova - spun off its North American cereal business under the name WK Kellogg in 2023, to focus more on its snack division with products such as Pringles.
The shareholders of WK Kellogg and the authorities still have to approve the plan - the Executive Board has already given its consent.
The transaction is expected to be finalised by the end of the year.
