Mars’ Acquisition of Kellanova Delayed Due to EU Investigation
- Mars’ $36 billion cash takeover of Pringles maker Kellanova will be delayed after the European Union announced an in-depth investigation into the merger. Mars now expects the deal to close toward the end of 2025.
- The European Commission, the E.U.’s antitrust regulator, warned in a preliminary investigation that the deal would increase Mars’ product portfolio and could give it greater bargaining power with retailers. This could result in higher prices for consumers.
- The transaction, which includes ownership of Cheez-It, Pringles, and other snacks, was initially projected to close in the first half of 2025. The commission has until Oct. 31 to conduct its investigation and make a decision.
Regulatory Concerns Surround Mars-Kellanova Merger
In a food industry where mega-mergers are rare, the Mars-Kellanova tie-up faced scrutiny from E.U. regulators. The European Commission expressed “serious doubts” about the deal, citing concerns about market position and increased bargaining power.
“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,” said Teresa Ribera, executive vice-president for clean, just and competitive transition.
Mars remains confident in the merger, stating that it will bring more choice and innovation to consumers. The company expressed optimism that the investigation will be resolved positively.
The FTC in the U.S. concluded that the deal was not anticompetitive, while the Mars-Kellanova merger would create a combined company with over $63 billion in net sales and 17 brands worth more than $1 billion.
This merger would expand Mars’ presence in the salty snacks market and complement its existing portfolio. Mars would also benefit from Kellanova’s global presence, especially in regions where Mars is not as dominant.