The European Commission has granted approval for Mars’ acquisition of Kellanova, valued at $35.9 billion.
In an official statement, the Commission confirmed it had “approved unconditionally” the merger after a thorough investigation into the proposed transaction, which was initially announced in August last year.
Just six months ago, Brussels outlined “preliminary concerns” about the deal, raising questions about potential price increases for consumers due to the merger of popular brands like Snickers and Pringles. At that time, the Commission’s preliminary findings suggested that the acquisition could enhance Mars’ “bargaining power vis-à-vis retailers” within the European Economic Area, encompassing the EU, Iceland, Liechtenstein, and Norway.
Following the merger, competition regulators in the US also approved the deal, leading to heightened anticipation for the Commission’s verdict, which was disclosed today (8 December). The Commission’s comprehensive investigation substantiated prior indications that both Mars and Kellanova possess a significant degree of market power across various product markets in several member states. However, the investigation concluded that the merger would not strengthen Mars’ negotiation power with retailers.
According to the Commission, incorporating Kellanova’s products into Mars’ portfolio would not enhance the Twix owner’s bargaining power. This is primarily because Kellanova’s products are characterized by a long shelf life and infrequent purchases. The Commission also observed no evidence supporting brand loyalty among consumers that would lead them to switch retailers should these products become unavailable.
Both companies are now progressing towards an anticipated closure of the transaction on Thursday, depending on the “satisfaction or waiver of customary closing conditions.” This merger brings together Kellanova’s portfolio of snack brands—such as Pringles and Pop-Tarts—as well as international cereal brands like Rice Krispies and Kellogg’s—into Mars’ existing lineup, which includes Snickers, Twix, and Skittles.
Andrew Clarke, global president of Mars, commented, “Today marks an extraordinary milestone and the culmination of years of work for many of our associates.” He expressed confidence that the union of Mars Snacking and Kellanova will forge new opportunities and drive growth, building on the strengths of both companies.
Meanwhile, Steve Cahillane, Kellanova’s chairman, president, and CEO, stated, “Serving as Kellanova’s chairman, president, and CEO has been a true honor, and I’m looking forward to seeing Kellanova people and brands thrive as part of Mars Snacking.”
Notably, Mars’ acquisition of Kellanova—previously a part of Kellogg Company before a strategic demerger in 2023—stands as one of the most significant deals in the packaged foods industry in recent times. This move rivals the monumental 2015 merger of Kraft Foods and HJ Heinz.
