EU approves $36B Mars-Kellanova buy; deal to close this week

McLean-based candy and pet care giant Mars has received the European Union‘s blessing to acquire Kellanova, maker of Pringles, Cheez-Its and other snacks, leaving no further obstacles to closing the $36 billion deal.

According to a Sunday announcement, the European Commission, the EU’s antitrust watchdog, concluded after an in-depth investigation that the acquisition would not raise competition concerns in Europe.

With the commission’s approval, Mars expects to close the acquisition on Thursday, it said in a Monday announcement.

The commission’s decision does not come as a surprise; Reuters reported in October that its unconditional approval was on its way, following the U.S. Federal Trade Commission’s approval in June. The European Commission, though, delayed the completion of the deal — planned for August — by launching a 90-day investigation into antitrust concerns in June.

“We looked very carefully at this deal to make sure that Mars would not gain extra power over retailers, power that could lead to for example higher prices for shops and, ultimately, for consumers,” said the EU’s Teresa Ribera, executive vice president for clean, just and competitive transition. “Our review found no evidence that this risk exists, so we have decided to approve the acquisition. We will continue to make full use of our powers under the merger regulation to ensure that competition keeps food prices affordable.”

Mars, the largest privately owned company based in Virginia and one of the nation’s largest private corporations, said in a statement Monday that it expects to finalize its all-cash acquisition of Kellanova on Thursday. Kellanova was previously part of Kellogg until the company split into two companies in 2023, with WK Kellogg Co. producing breakfast cereals and Kellanova manufacturing its snack brands.

According to Mars, after the transaction is closed, Kellanova’s Pringles, Cheez-It, Pop-Tarts, Rice Krispies Treats and other snack brands will be under the Chicago-based Mars Snacking umbrella, along with Mars candy brands, which include Snickers, M&Ms and Twix.

“We are excited to have received final regulatory approval for the pending acquisition of Kellanova,” Mars President and CEO Poul Weihrauch said in a statement Monday. “Our focus now turns to welcoming Kellanova employees to Mars and creating an even more innovative global snacking business that delivers greater choice and quality to more consumers around the world.”

The acquisition was announced in August 2024. After the closing, Kellanova’s common stock will be delisted and will cease trading on the New York Stock Exchange.