Ferrero to buy WK Kellogg for $3.1 billion

Italian confectioner Ferrero, known for brands like Nutella and Kinder, is buying the century-old U.S. cereal company WK Kellogg in a deal valued at approximately $3.1 billion.

The Ferrero Group said Thursday it will pay $23 for each Kellogg share. The transaction includes the manufacturing, marketing, and distribution of WK Kellogg Co.’s portfolio of breakfast cereals across the United States, Canada, and the Caribbean.

WK Kellogg’s shares were up 30% in premarket trading Thursday.