Kellogg’s stock shot up like a rocket: Ferrero acquisition may be behind it

According to the BBC, the Wall Street Journal and the Financial Times, the acquisition could be completed this week, and the purchase price could reach $3 billion. This could give a serious boost to Kellogg, which has been struggling with financial problems for a long time, and has accumulated more than half a billion dollars in debt in recent years.

The potential buyer, Ferrero, is the world’s second largest confectionery company, with globally known brands such as Nutella, Kinder, Tic Tac and Ferrero Rocher. The family-owned company was founded in the 19th century by Pietro Ferrero, its current chairman, and Giovanni Ferrero is the richest man in Italy. The company is such a large player in the market that it alone is said to use a quarter of the world’s hazelnut crop.

Kellogg’s, which was targeted, is also a legendary brand: its breakfast cereals are known to almost every American, but they are also popular in our country. The story of the founder, Will Keith Kellogg, deserves a separate novel: the former broom seller became a millionaire promoting healthy eating, who donated his fortune to charity and lived to be 91 years old.

However, Kellogg has recently found itself in headwinds not only on the market, but also on the political front. In Donald Trump’s “Make America Healthy Again” campaign, foods that contain artificial colors were particularly criticized – so Kellogg’s products were also targeted. The company has already announced that it will phase out synthetic dyes from school meals by the 2026-27 school year, but there is no specific date yet for a full transition for consumer products.

The stock market euphoria is clearly focused on the potential emergence of Ferrero – investors believe that a stable, internationally successful owner could revive the iconic player in the American breakfast market.