On Thursday, the Ferrero Group announced it would pay $US23 ($35) for each share of Kellogg. This agreement encompasses the production, marketing, and distribution of WK Kellogg Co’s breakfast cereal range across the US, Canada, and the Caribbean.

WK Kellogg’s shares were up 30 per cent in premarket trading overnight.

Kellogg, which was founded in Battle Creek, Michigan, in 1906, makes Fruit Loops, Special K, Frosted Flakes and Rice Krispies.

The existing company was established in 2023 after Kellogg’s snack labels, including Cheez-Its and Pringles, were separated to create a new entity named Kellanova. Last year, Mars Inc, known for M&M’s, revealed plans to purchase Kellanova in a deal nearly valued at $US30 billion ($45.8 billion).

Ferrero Group, which was founded in Italy in 1946, has been trying to expand its US footprint. In 2018 it bought Nestle’s US candy brands, including Butterfinger, Nerds and SweeTarts. And in 2022 it bought Wells Enterprises, the maker of ice cream brands like Blue Bunny and Halo Top.

The deal, which still needs 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 trade on the New York Stock Exchange and the company will become a Ferrero subsidiary.