Italian confectioner Ferrero, known for brands like Nutella and Kinder, is buying the century-old U.S. cereal company WK Kellogg in an effort to expand its North American sales.

The Ferrero Group said Thursday it will pay $23 for each Kellogg share, or approximately $3.1 billion. The transaction includes WK Kellogg Co.’s six manufacturing plants and the marketing and distribution of its breakfast cereals across the United States, Canada and the Caribbean.

Kellogg was founded in Battle Creek, Mich., in 1906 after its founder accidentally figured out how to make flaked cereal while he was experimenting with granola. Kellogg still makes Corn Flakes, as well as Froot Loops, Special K, Frosted Flakes, Rice Krispies and other cereals.

Kellogg now has four U.S. plants, which are located in Michigan, Pennsylvania, Tennessee and Nebraska. It also has a plant in Mexico and a plant in Canada. The company has around 3,000 employees.

The current company was formed in 2023, when Kellogg snack brands like Cheez-Its and Pringles were spun into a separate company called Kellanova. M&M’s maker Mars Inc. announced last year that it planned to buy Kellanova in a deal worth nearly $30 billion.

Ferrero Group, a privately held, family-owned company founded in Italy in 1946, has been trying to expand its U.S. footprint. In 2018 it bought Nestle’s U.S. candy brands, including Butterfinger, Nerds and SweeTarts. In 2022, it bought Wells Enterprises, the maker of ice cream brands like Blue Bunny and Halo Top.

Gary Pilnick, WK Kellogg’s chairman and CEO, said the combination would give Kellogg resources to grow its brands and “explore opportunities beyond cereal.” Pilnick also said that Ferrero has a track record of supporting the communities in which it operates.

Kellogg has been struggling with a long-term decline in U.S. cereal consumption as consumers turned to protein bars, shakes and other breakfast items. Cereal sales got a bump during the coronavirus pandemic as more families stayed home, but sales continued to decline after the pandemic eased.

At the start of July, U.S. cold cereal sales were down 6% compared to the same period in 2022, according to market research company Nielsen IQ. Kellogg’s net sales fell 2% to $2.7 billion in 2024.

Earlier this year, Kellogg said it was reformulating cereals sold to schools to remove artificial dyes and will not include them in any new products starting in January.

Ferrero’s acquisition, which still needs approval from Kellogg shareholders, is expected to close in the second half of the year.

— Associated Press

Tesla sets meeting to comply with Texas law

Tesla said Thursday that it would hold a shareholders meeting Nov. 6, nearly four months after what is required under Texas law.

The maker of electric cars made the announcement in a regulatory filing, a day after a group of state treasurers, comptrollers and shareholder representatives sent a letter to the company expressing “deep concern regarding the lack of timely notice about the date and format of Tesla’s 2025 annual general meeting.”

Texas, where Tesla is incorporated, requires companies listed on a stock exchange to hold annual meetings within 13 months after the previous meeting. In Tesla’s case, that deadline is Sunday.

In a document, dated Wednesday, filed with the Securities and Exchange Commission, Tesla did not give a reason for delaying the meeting.

Average mortgage rates reverse, ease up

The average rate on a 30-year U.S. mortgage edged up this week, ending a five-week decline in borrowing costs for homebuyers.

The long-term rate ticked up to 6.72% from 6.67% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.89%.

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also rose. The average rate increased to 5.86% from 5.80% last week. A year ago, it was 6.17%, Freddie Mac said.

— From news services