Dow, S&P 500, Nasdaq futures steady amid Trump’s latest tariff threats, Nvidia’s milestone

The maker of Nutella and Ferrero Rocher, Ferrero, is reportedly close to finalizing a deal to acquire WK Kellogg Co. (KLG) for a roughly $3 billion dollar price tag, per the WSJ. The stock soared in after-hours trading following the report, up over 50%.

As of Wednesday’s market close, the company had a market cap of roughly $1.5 billion.

The cereal maker, behind brands like Froot Loops and Frosted Flakes, has been under pressure lately as consumers crave less breakfast food. Over the course of four weeks, ending June 29, cereal category sales fell 1.8% “in line with the trend from recent months,” Stifel analyst Matthew Smith wrote in a note to clients. For WK Kellogg in particular, dollar sales were down 5.7% in that same time frame.

It could get even worse when compared to the highs of the pandemic, per Smith. He said that “cereal sales had been running down -1.5% or so, we believe the volumes are likely to continue to move towards the historical decline rate.”

“The category is holding in and it’s shifting … we will shift with it,” CEO Gary Pilnick told investors on its recent earnings call, “as consumers are looking for value, they’re looking for health and wellness… No matter what the combination is, the cereal category is a tremendous destination for those consumers.”

WK Kellogg did not respond to a request for comment.