Deal making in the snacking space has picked up pace as food brands battle muted sales in the wake of price hikes owing to higher input costs and a shift in consumer preference for healthier options.

Ferrero has offered WK Kellogg's shareholders $23 per share, representing a 31% premium to the stock's last close. Shares of the cereal maker were up 30.4% at $22.84 in early trading on Thursday.

The deal, which is Ferrero's biggest acquisition in recent years, brings legacy brands such as Nutella, Kinder, Tic Tac, Frosted Flakes, Froot Loops and Special K under one roof.