In the second week of July, news of the Ferrero Kellogg acquisition made headlines around the world. The Federro Kellogg deal comes in a season when the health consciousness of food consumers is at a record high.
According to an official announcement by the two companies, Ferrero will seal the WK Kellogg acquisition deal for $3.1 billion. This announcement was good news for the cereal giant’s stocks. The share price of WK Kellogg has declined by over 2% in the 2025 financial year. However, since the closure of the Ferrero Kellogg acquisition at a share price of $23 per unit, the commodity soared by 30% on the New York Stock Exchange (NYSE).
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Merger details are not yet set in stone, despite the official announcements of the Ferrero Kellogg acquisition. This is because the deal awaits approval from financial regulators and shareholders. Reports suggest that all formalities of the cereal brand acquisition should conclude by Q4 2025.
The Ferrero Group, a family-owned Italian giant, is not a stranger to food industry mergers and acquisitions. According to Forbes, the candy maker has splashed approximately $13 billion on acquiring 21 food companies in the past decade. Ferrero’s acquisition of WK Kellogg will further cement the Nutella maker’s reputation in the United States.
WK Kellogg Co., on the other hand, was part of one of the largest food conglomerates in the US—Kellogg Company. However, a Kellogg spin-off was created in October 2023, seamlessly breaking the larger company into two independent entities. Kellanova took charge of the parent company’s global snacking and American frozen food businesses. Meanwhile, WK Kellogg, the second Kellogg spin-off, handles the North American cereal business. Like WK Kellogg, Kellanova is also on the verge of a $36 billion acquisition by the M&M maker, Mars.
By carefully assessing food market trends 2025 and the Ferrero Kellogg acquisition, something stands out to industry watchers. The Ferrero business strategy and goal involve market penetration. Starting a new cereal business and competing with established brands would have been another option. Also, Ferrero did not bank on the growing market performance of their Nutella brand. Instead, they saw an opportunity to leverage the customer loyalty enjoyed by a known US cereal brand.
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The Nutella Kellogg deal will help the Ferrero Group create improved products for health-conscious customers. It is also the dawning of an era of legacy consolidation among international food conglomerates. Instead of just allowing their businesses to go under, food brands are embracing compromise by merging.
