Mars’ US$36bn bid to acquire Kellanova looks set to win unconditional European Union (EU) antitrust approval. Image source: Pixabay
Confectionery and snack giant Mars’ US$36bn bid to acquire global snacking business Kellanova looks set to win unconditional European Union (EU) antitrust approval, according to three sources with direct knowledge of the matter quoted in a 7 October Reuters report.
Kellanova resulted from the split of the old Kellogg Company, completed in October 2023.
Kellogg’s split also resulted in the formation of North American cereal business WK Kellogg, which Italian chocolate and confectionery giant Ferrero has just acquired for US$3.1bn.
Mars’ acquisition of Kellanova would bring some of the largest snack and breakfast brands under one roof, including Mars’ M&M’s and Snickers and Kellanova’s Pringles crisps, Pop Tarts and Eggo.
The deal was given the all-clear by the US Federal Trade Commission in June but the EU opened a full-scale investigation that month, concerned that Mars’ increased portfolio and bargaining power with retailers might lead to higher prices for consumers or reduce competition.
The European Commission (EC) had found insufficient legal grounds to demand concessions, the sources in Reuters’ report said.
An EU decision on the deal was expected by 19 December.
A combined Mars and Kellanova would account for roughly 12% of the US snacking and confectionery industry, according to market share data from NielsenIQ.
In announcing the split last summer, Kellogg’s said the move would drive growth for both companies and this was likely to include the acquisition of new brands.
At that time, Kellogg’s said it expected two distinct corporate cultures to emerge, with decisions at Kellanova driven by the fact that it was an international snacks business.