WASHINGTON, July 11 — Italian Nutella producer Ferrero wants to swallow the US company WK Kellogg, known for its breakfast cereals, in a deal worth more than US$3 billion (RM12.9 billion), reported German news agency dpa.
Production, marketing and distribution in North America and the Caribbean are to be transferred to the Italian company's portfolio, the two companies announced yesterday.
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 wants to put US$23 in cash per WK-Kellogg share on the table for the takeover — which would correspond to a total enterprise value of the Americans of US$3.1 billion (RM13 billion).
The Kellogg Group — now Kellanova — spun off its North American cereal business under the name WK Kellogg in 2023 in order 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.
— Bernama-dpa
