WK Kellogg Co ( KLG ) shares are soaring in Wednesday’s after-hours session following a report that Ferrero is nearing a deal to acquire the company.

What To Know: Family-owned Italian candy company Ferrero is closing in on a deal to acquire cereal maker WK Kellogg for roughly $3 billion, according to a Wall Street Journal report.

People familiar with the matter reportedly said a deal could be completed as soon as this week.

Ferraro continues to target U.S. brands for potential acquisitions. The company previously bought Wells Enterprises, the owner of several ice-cream brands including Blue Bunny, and acquired Nestlé’s chocolate business in the U.S.

WK Kellogg was formed as part of a spin-off from Kellogg in 2023. The other part of Kellogg’s snacking business was acquired by Mars for roughly $36 billion.

WK Kellogg shares have struggled to find any momentum this year after revenue estimates fell short of estimates in the prior two quarters.

Last quarter, WK Kellogg missed analyst estimates on the top and bottom lines and lowered its full-year growth guidance citing weaker-than-expected consumption trends. The company noted that its revised outlook also included a modest impact from tariffs.

KLG Price Action: WK Kellogg shares were up 49.9% in after-hours Wednesday, trading at $26.23 at the time of publication, according to Benzinga Pro.

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