Italian chocolate company Ferrero is eyeing a potential acquisition of WK Kellogg, the parent company of Fruit Loops and Rice Krispies, in a deal that is estimated to be around £2.2bn.

The Financial Times revealed that the deal could be closed by the end of this week, and the shares of the cereal brand have skyrocketed since media reports surfaced. According to the BBC, Kellogg’s shares went up by 56% after the news of a potential acquisition was revealed.

Ferrero has been growing its brand portfolio by acquiring several food brands and currently operates Ferrero Rocher, Kinder, and Tic Tac.

Kellogg’s had previously split its businesses in 2023, with the snack brands operating under the new name of Kellanova. WK Kellogg is the cereal section of the brand and has been struggling to stay afloat with over $500m in debt.

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Last year Mars acquired the snack brand section Kellanova, which has Pringles, Pop-Tarts, Rice Krispies Treats, and Special K under its portfolio, for a deal that was around £22bn.

The new acquisition will give Ferrero a stronger footing in the US-based breakfast cereal market.

Most confectionary, snack, and cereal brands are facing mounting pressure as consumers shift more towards healthy eating and are prioritising foods with less salt, sugar, and fat.

However, the potential transaction has not been officially confirmed by either business, and specific details have not been disclosed.