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

Italian chocolate maker Ferrero is buying WK Kellogg Co. in a more than $3 billion deal expected to be finalized before the year is out, the companies announced Thursday.

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

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.

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.

U.S. sales of the colorfully packaged morning staple have been in a decades-long decline, a trend back in the spotlight with news that Italian confectioner Ferrero Group plans to purchase WK Kellogg, maker of Corn Flakes, Froot Loops, Rice Krispies and other familiar brands.

A temporary road closure will affect a section of Michigan Avenue in downtown Battle Creek on Thursday, July 10, and Friday, July 11.