Kellogg shares soar on stories of Ferrero takeover talks | EUROtoday

Shares in breakfast cereal big WK Kellogg have soared after stories that chocolate maker Ferrero is shut to purchasing the agency for about $3bn (£2.2bn).

Ferrero might finalise the deal for the maker of Fruit Loops and Corn Flakes as quickly as this week, the Wall Street Journal and Financial Times reported.

The Italian proprietor of the Ferrero Rocher and Kinder manufacturers has been increasing lately, shopping for Nestle’s confectionery enterprise and a number of other different meals companies.

WK Kellogg shares rose by greater than 50% in after-hours buying and selling in New York after the stories.

WK Kellogg and Ferrero didn’t instantly reply to BBC requests for remark.

Kellogg has been struggling financially lately regardless of a serious shakeup in 2023 that noticed it focus solely on breakfast cereals.

Food companies are dealing with main challenges as prospects shift to more healthy choices, which has compelled them to vary the best way the function.

The business has additionally come beneath stress from the Trump administration, which has focused synthetic colouring in manufacturers like Fruit Loops as a part of its “Make America Healthy Again” marketing campaign.

Kellogg has mentioned it would take away the artificial colors from cereals eaten in faculties by the 2026-27 faculty yr. But it has not but set a timeline for taking them out of cereals offered to most people.

The firm’s founder, Will Keith Kellogg, is broadly thought-about to be the inventor of corn flakes.