Ferrero, the maker of Nutella, is reportedly close to acquiring WK Kellogg for up to $3 billion.

Shares of WK Kellogg, known for cereals like Froot Loops and Frosted Flakes, surged up to 50% after reports suggested Italian chocolate giant Ferrero is nearing a $3 billion acquisition. Ferrero, maker of Nutella and Ferrero Rocher, is expanding in the U.S., having already acquired Wells Enterprises and Nestlé's U.S. chocolate business. The deal, if finalized, would be Ferrero's largest acquisition to date, giving them a significant presence in the U.S. cereal market.