The Kellogg Company has announced the repurchase of 12,784,751 of its shares from the WK Kellogg Foundation Trust for US$550m in a privately negotiated transaction. The price of $43.02 per share reflects recent trade on the New York Stock Exchange.

"Kellogg Company is very committed to delivering shareholder value. Consequently, we are pleased to announce the repurchase of these shares from the W.K. Kellogg Foundation Trust," said Jim Jenness, Kellogg's chairman and chief executive officer. "Our company's operating principles focus the entire organisation on generating cash flow and creating the financial flexibility necessary for us to complete significant transactions such as this."

It is expected that the transaction will be completed tomorrow (21 February).