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.

The $3.1 billion acquisition would combine Ferrero, which makes Tic Tacs and Nutella, with the producer of Frosted Flakes and Froot Loops.

Ferrero has agreed to acquire WK Kellogg (KLG, Financials) for $3.1 billion, marking the Italian confectionery giant's largest deal in years and signaling its serious move into the U.S. breakfast aisle.