Italian confectioner Ferrero, known for brands like Nutella and Kinder, is buying the century-old US cereal company WK Kellogg in a deal valued about $US3.1 billion ($4.74 billion).

The Ferrero Group said on Thursday it will pay $US23 ($35) 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 per cent in premarket trading overnight.

Kellogg, which was founded in Battle Creek, Michigan, in 1906, makes Fruit Loops, Special K, Frosted Flakes and Rice Krispies.

The current company was formed in 2023, when Kellogg’s 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 $US30 billion ($45.8 billion).

Ferrero Group, which was founded in Italy in 1946, has been trying to expand its US footprint. In 2018 it bought Nestle’s US candy brands, including Butterfinger, Nerds and SweeTarts. And in 2022 it bought Wells Enterprises, the maker of ice cream brands like Blue Bunny and Halo Top.

The deal, which still needs approval from Kellogg shareholders, is expected to close in the second half of the year. Once the transaction is complete, Kellogg’s stock will no longer trade on the New York Stock Exchange and the company will become a Ferrero subsidiary.