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.

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.

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