Nutella maker Ferrero plans to buy century-old cereal maker WK Kellogg for $3.1 billion

By DEE-ANN DURBIN and MICHELLE CHAPMAN Associated Press Business Writers Italian confectioner Ferrero known for brands like Nutella and Kinder is buying the century-old U S cereal company WK Kellogg in a deal valued at approximately billion The Ferrero Group revealed Thursday it will pay for each Kellogg share The transaction includes the manufacturing marketing and distribution of WK Kellogg Co s portfolio of breakfast cereals across the United States Canada and the Caribbean WK Kellogg s shares were up in premarket trading Thursday Related Articles Is Outlook down Thousands of users statement issues accessing their email Preponderance US adults say child care costs are a major obstacle a new AP-NORC poll finds Wall Street is off to a sluggish start while Delta soars on stronger outlook US applications for jobless benefits fall to last week remain at historically healthy level New Mexico village rebuilds all over again after record-breaking flash flood kills Kellogg which was founded in Battle Creek Michigan in makes Fruit Loops Special K Frosted Flakes and Rice Krispies The current company was formed in when Kellogg s snack brands like Cheez-Its and Pringles were spun into a separate company called Kellanova M M s maker Mars Inc broadcasted last year that it planned to buy Kellanova in a deal worth nearly billion Ferrero Group which was founded in Italy in has been trying to expand its U S footprint In it bought Nestle s U S candy brands including Butterfinger Nerds and SweeTarts And in it bought Wells Enterprises the maker of ice cream brands like Blue Bunny and Halo Top The deal which still demands approval from Kellogg shareholders is expected to close in the second half of the year Once the transaction is complete Kellogg s stock will no longer arrangement on the New York Stock Exchange and the company will become a Ferrero subsidiary