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Ferrero, the Italian company known for Nutella and Ferrero Rocher, is reportedly close to buying cereal maker WK Kellogg in a deal worth about $3 billion.

The deal could be completed as soon as this week, sources familiar with the matter said.

After news of the possible sale broke, WK Kellogg's stock jumped by 51% in after-hours trading, Reuters said.

According to WallStreetJournal, the company is known for producing popular cereals like Froot Loops, Frosted Flakes, Raisin Bran, and Corn Flakes.

WK Kellogg was created two years ago when the original Kellogg Company split into two separate businesses.

The cereal division became WK Kellogg, while the snack division, which includes Pringles and Cheez-It, was renamed Kellanova.

Ferrero's latest move would mark its biggest step yet into the US market. The company, which started as a family-run business in Italy in the 1940s, has already expanded in recent years.

Ferrero Set to Double Down on WK Kellogg's Cereal Empire

In 2018, Ferrero bought Nestlé's US candy business. Then in 2022, it purchased Wells Enterprises, the maker of Blue Bunny ice cream.

With this new deal, Ferrero would add some of America's most famous breakfast cereals to its growing portfolio.

WK Kellogg currently has a market value of about $1.5 billion. If the deal goes through, Ferrero will be paying double that amount, signaling strong interest in growing its share of the North American food market, CNN said.

While neither Ferrero nor WK Kellogg has publicly commented on the deal, many analysts believe it reflects big changes in the food industry.

Consumers are shifting away from traditional breakfasts, and rising prices have made it harder for many brands to keep shoppers loyal.

Last year, WK Kellogg's CEO, Gary Pilnick, made headlines when he suggested cereal could be eaten for dinner, as a way for families to save money. The comment was criticized by some who saw it as tone-deaf during a time of high grocery prices.

This possible sale follows another major industry deal: in June, candy giant Mars completed its $36 billion purchase of Kellanova.