The Kellogg cereal business, an iconic Michigan brand, is being sold to Ferrero, an Italian chocolate and sweets company.

Ferrero, the Italian candy maker known for brands including Nutella and Kinder, has agreed to purchase U.S. cereal company WK Kellogg for $3.1 billion, according to reports. The Ferrero Group will acquire WK Kellogg at a price of $23 per share.

Italy's Ferrero has continued its U.S. spending spree with its proposed acquisition of famous cereal maker WK Kellogg amid wider food manufacturer consolidation.

WK Kellogg Co’s headquarters is in Battle Creek. After the transaction closes, Battle Creek will remain a core location for the company and will be Ferrero’s headquarters for North America cereal, a news release from WK Kellogg states.

The deal, which still needs approval from WK Kellogg Co.’s shareholders, is expected to close in the second half of the year.

The Ferrero Group said Thursday it will buy WK Kellogg Co. in a deal valued $3.1 billion, expanding the Italian food giant's global reach. Kellogg, which was founded in Battle Creek, Michigan, in 1906, is known for brands including Corn Flakes, Froot Loops, Rice Krispies and Special K. Ferrero's brands include Nutella and Rocher chocolates.

Kellogg, the maker of such brands as Frosted Flakes, Froot Loops, Rice Krispies and Raisin Bran, began business in 1906 as the Battle Creek Toasted Corn Flake Co., before becoming Kellogg Toasted Corn Flake Co. in 1909.

BATTLE CREEK, Mich. (WILX) - Ferrero Rocher, the Italian candy company and Nutella owner, is close to purchasing Michigan cereal company WK Kellogg, reports the Wall Street Journal. The WSJ reported Wednesday that the $3 billion deal could be finalized this week. CNBC reported that WK Kellogg shares jumped 50% after the WSJ article.