Report: EU set to launch antitrust probe of $35.9B Mars-Kellanova deal

The European Union‘s antitrust watchdog is expected to launch a full-scale investigation into Mars‘ $35.9 billion acquisition of Kellanova that would at least delay the merger, according to a Reuters report.

The European Commission’s Directorate-General for Competition is set to issue a decision Wednesday on next steps for the deal, which the McLean-based candymaker and pet care giant Mars and snack producer Kellanova, based in Michigan, expected to complete in August. The companies acknowledged that it could take up to 12 months longer to complete the merger if they didn’t receive necessary regulatory approvals during the first six months of the year.

According to Reuters’ June 18 report, Mars was not expected to meet a deadline to submit remedies to the commission’s concerns about its high market share in some products in EU countries and its portfolio of strongly performing brands. A June 19 report from The Wall Street Journal said that Mars did not meet the June 18 deadline set by the EU panel.

Mars, which produces M&M’s, Snickers and Twix, announced the all-cash deal in August 2024, which would bring Cheez-It, Pop-Tarts, Pringles, Eggo and other food products under Mars’ ownership. The publicly owned Kellanova was created in October 2023 when Kellogg split into two companies, with WK Kellogg Co. producing breakfast cereals and Kellanova manufacturing its snack brands.

Mars is Virginia’s largest privately held company and the fourth-largest in the United States. In recent years, it has made acquisitions in pet care and candy sectors in an effort to double its sales by 2033.

Mars and Kellanova did not respond immediately to requests for comment Tuesday.