WK Kellogg Thursday agreed to be bought by the owner of Ferrero Rocher in a deal worth around $3.1 billion, as the cereal maker has been struggling with weakening consumer demand due to persistently high inflation. 

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Kellogg's shares soared nearly 50% in premarket trading Thursday after a source told Reuters the Italian candy maker behind Ferrero Rocher is nearing a deal to buy the firm, uniting two of the world's most recognizable consumer food companies.

Shares of the Battle Creek, Michigan-based company hit $26.10, their highest level since the firm — which makes the popular Fruit Loops and Frosted Flakes — was spun off from Kellogg Company in 2023.

The Wall Street Journal was the first to report, after market closed on Wednesday, that Ferrero could finalize the roughly $3 billion deal as soon as this week.

WK Kellogg, which is valued at $2.31 billion, lowered its annual organic sales and core profit forecasts in May on the back of subdued consumer spending.

The maker of Nutella hazelnut spread, founded in Italy in 1946 and currently headquartered in Luxembourg, has turned into a global group, boosted by the aggressive acquisition campaign launched by its Executive Chairman Giovanni Ferrero.

The group reported a turnover of 18.4 billion euros ($19.2 billion) in the financial year ending on August 31 and said it had increased its investments to boost manufacturing capabilities and expand across categories, including ice creams and biscuits.