(Reuters) -The Italian candy maker behind Ferrero Rocher is nearing an about $3 billion deal to buy WK Kellogg, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.

Shares of WK Kellogg, the company behind Froot Loops and Frosted Flakes, surged about 51% after the bell.

Ferrero could finalize the deal as soon as this week, the report said.

The companies did not immediately respond to Reuters' requests for comment.

WK Kellogg was formed after Kellogg spun off its North American cereal business into a separate publicly traded company about two years ago. The remaining global snacking business is called Kellanova.

In June, Snickers owner Mars' $36 billion takeover deal for Kellanova received the U.S. antitrust approval.

Both WK Kellogg and Kellanova have been grappling with tepid demand amid challenging market conditions.