Ferrero’s Acquisition of WK Kellogg Co. Remains Unconfirmed Amid Past Reports

Reports from a past Wednesday indicated that Michigan’s WK Kellogg Co., the Battle Creek-based cereal giant, was poised for a nearly $3 billion acquisition by Italian candymaker Ferrero SpA, known for Ferrero Rocher, Butterfinger, and Nutella. At the time, sources suggested a deal could be finalized within that same week.

Following the initial reports, shares in Kellogg saw a significant surge, climbing over 50% in after-hours trading from a Wednesday closing price of $17.50. Requests for confirmation to both Ferrero and Kellogg were not immediately returned at the time of the original reporting.

This prospective deal, if confirmed, would represent a notable shift for corporate Michigan, raising questions about the retention of heritage companies like Kellogg and potential impacts on local employment and investment. WK Kellogg Co., with a market value of roughly $1.5 billion and approximately $500 million in debt, employs nearly 700 people in Michigan. The company was separated from Kellanova two years prior, with WK Kellogg focusing on North American cereals such as Frosted Flakes and Froot Loops.

Past statements from WK Kellogg Co.’s chairman and CEO, Gary Pilnick, in September 2023, emphasized the company’s 117-year legacy and its journey towards modernizing its supply chain and improving profit margins as a standalone entity. The company has also faced scrutiny regarding artificial dyes in its cereals, including an investigation launched by the Texas Attorney General in April.

As of the current date, the status of this potential acquisition and any subsequent developments remain unconfirmed by the companies involved, making the original reports historical context rather than breaking news.

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