Will the EU approve Mars’ $35.9bn Kellanova merger? Summary
- European Commission likely to approve Mars-Kellanova deal without remedies
- Initial competition concerns proving difficult for regulators to substantiate
- Mars would gain Pringles and Pop Tarts, boosting snack market dominance
- US regulators already cleared the deal with no antitrust objections
- If approved, it becomes one of the largest food mergers ever
The European Commission is leaning towards approving Mars, Inc’s $35.9bn (€30.59bn) acquisition of snack brand Kellanova, without remedies. That’s according to a report published by media organisation The Capitol Forum.
The reason for this, according to sources, is that the Commission is struggling to back up the concerns, which sparked the initial review.
“The merging companies could get the green light without having to make any major concessions,” according to sources to The Capitol Forum.
The deal was first announced in August 2024, and slated to close in the first half of 2025.
And though it sailed through the approval systems in the United States, with the US Federal Trade Commission (FTC) concluding it does not pose a threat to market competition, it faced opposition in Europe.
Known for big-name brands including Snickers, Maltesers and Galaxy, Mars is already a giant in the snacking sector. But the pending acquisition of Kellanova, home to consumer favourites such as Pringles and Pop Tarts, would take the multinational to new levels of dominance.
And it was this which was cause for concern to European regulators.
Competition concerns
The European Commission announced that it would launch an investigation into the proposed acquisition, back in June this year.
“By acquiring Kellanova, Mars will add several very popular brands of potato chips and cereals to its already broad and strong product portfolio,” said Teresa Ribera, executive vice-president for clean, just and competitive transition at the European Commission, when the investigation was announced. “As inflation-hit food prices remain high across Europe, it is essential to ensure that this acquisition does not further drive up the cost of shopping baskets.”
The Commission’s inquiry requires Mars to provide certain information to reassure regulators that competition within the sector would not be threatened.
If approved, the all-cash deal would become one of the biggest food industry acquisitions in history.
Mars, Incorporated and Kellanova have not immediately responded to requests for comment.
The European Commission declined to comment.
