(BATTLE CREEK) – Talks are moving forward on the W.K. Kellogg Company selling their Michigan based cereal company to an Italian sweets maker.

The Ferrero Group, which also owns Butterfinger, Nutella and Keebler among other companies, is reportedly offering to purchase Kellogg for $3 billion, and could buy them as early as this week.

Kellogg started operating in 1906 as the Battle Creek Toasted Corn Flake Company, before becoming Kellogg Toasted Corn Flake Company in 1909.

The deal, if confirmed by the companies, would mark another potential loss for corporate Michigan and its ability to retain such heritage businesses.

Kellogg, which has a market value of roughly $1.5 billion and about $500 million in debt, employs nearly 700 people in Michigan. Two years ago, the cereal maker was split into two companies: Battle Creek based W.K. Kellogg and Kellanova, based in both Battle Creek and Chicago.