Armita Fazel, J.D. Candidate, 2028

Earlier this year, The Ferrero Group (“Ferrero”) announced its decision to acquire WK Kellogg Co (“Kellogg”), drawing widespread attention from candy lovers and cereal connoisseurs alike. After a series of successful acquisitions, this deal marks the next step in Ferrero’s expansion into the United States. Founded more than eighty years ago as an Italian-grown company, Ferrero entered the American markets in 1969 and has continued to grow steadily since. The agreement, announced on July 10, 2025, and approved on September 19, 2025, has made Kellogg a wholly owned subsidiary of Ferrero for the price of 23 dollars per share, totaling an enterprise value of a striking $(opens in a new tab)3.1 billion.

This is not the first time Ferrero and Kellogg have crossed paths. In 2019, Ferrero acquired a powerful portfolio of cookie, fruit snack, and ice cream brands from Kellogg, including Famous Amos cookies, Keebler, and even Little Brownie Bakers, the supplier of cookies to the beloved Girl Scouts. The companies’ continued partnership set the stage for this year’s landmark deal.

Ferrero’s strategic vision is firmly set on expanding its large scope of influence on North American shelves, as the company already controls a plethora of household staple snack brands, including Nutella, Tic Tac, Butterfinger, and more. This strategic growth will contribute to its overall footprint on American soil, strengthening its mission of celebrating special moments with high-quality products.

For Kellogg, this acquisition serves as an opportunity to reinvigorate declining sales and increase brand relevance in a challenging market. Growing consumer interest in health and nutrition has proved challenging for the breakfast cereal brand as people move away from artificial dyes and towards more whole foods.

Overall, the deal provides both companies with added resources and flexibility to grow two classic brands in an increasingly competitive landscape.

This deal particularly stands out against a slow global transactional market. As a result of increasing tariffs, this year marked the slowest start of merger activity seen in over two decades. Changing trade policies created uncertainty about the results of rapid economic changes, causing sellers and buyers alike to hold off until markets begin to stabilize. Companies were urged to evaluate how the changing environment could affect the value of their businesses, with the possibility of either an increase or a decrease as the market changes.

With this sluggish start to 2025 for global mergers and acquisitions, the $3.1 billion deal stands out as a bold strategic move. Ferrero’s initiative signals not only confidence in its long-term North American ambitions, but also a readiness to move ahead despite broader market hesitation.

While families are not going to be finding Ferrero Rocher balls in their frosted flakes as a result of this deal, there are still implications for the everyday shopper. Recent years have seen a shift in shopping trends among consumers, who are switching to store-brand options or cutting back on certain items completely due to significant price increases. The consolidation of each company’s manufacturing, production, and distribution could lead to more cost-efficient operations, with the hope that these savings will be reflected in everyday prices for customers who miss their favorite brands.