The shares of the Corn Flex’s manufacturer have increased over 50% after the shares of chocolate, Ferrero, a firm is close to the firm for about $ 3BN (£ 2.2bn).
Wall Street Journal and Financial Times reported that an acquisition deal for WK Kallogg, which is the owner of fruit loop and rice crispies breakfast grains, as soon as it may come this week.
While buying Nestle’s confectionery business and several other food firms, the Italian owner of the Ferrero Dare and Kinder Brands has expanded in recent years.
WK Kelog and Ferrero did not immediately respond to the BBC requests for comments.
The deal may be worth the $ 1.5BN stock market value of double WK celebrations when Ordinary Trading ended on July 9.
It will look at the pharyro taking a prominent place in the American breakfast grain market.
Established in 1946, the Italian firm is one of the biggest players in the Chocolate Market, with more than 30 brands sold globally.
WK Kellogg has been financially struggling in recent years and has more than $ 500m loan.
In 2023, the breakfast grain business was separated from its former original company’s snack operation, changed to Kelanova.
Next year, Kelanova, which makes The pringles crisps and pop tarts were purchased by the confectionery giant Mangal for $ 36BN.
The facility food firms are facing major challenges as customers have moved to healthy options, which have forced them to change the way they operate.
Companies have also seen an increase in their costs, forcing some firms to impose their prices.
The industry has also come under the pressure of Trump administration, which has targeted artificial color in brands such as fruit loops as part of its “Make America Healthy Again” campaign.
Kelog has said that it will remove synthetic colors from the grains eaten in schools till 2026-27 school years. But it has not yet set a time outline to get them out of the grains sold to the general public.
The company’s founder, Will Keith Kellog, is widely considered the inventor of corn bunch.
