Buy already has U.S. regulatory approval
FILE PHOTO: M&M's chocolate candies are displayed at the M&M's World store in Manhattan in New York City, U.S., April 19, 2018. REUTERS/Brendan McDermid/File Photo
FILE PHOTO: M&M's chocolate candies are displayed at the M&M's World store in Manhattan in New York City, U.S., April 19, 2018. REUTERS/Brendan McDermid/File Photo
Buy already has U.S. regulatory approval
BRUSSELS (Reuters) – McLean-based candy and snacks giant Mars‘ $36 billion bid to acquire Pringles and Pop-Tarts maker Kellanova is set to clear a major hurdle by winning unconditional European Union antitrust approval, three people with direct knowledge of the matter said.
The deal, among the biggest in the sector, would bring under one roof brands ranging from M&Ms, Snickers and Whiskas cat food to Pringles crisps, Pop-Tarts and Kellogg’s cereals. It has already secured a green light without any conditions from U.S. authorities.
The European Commission, which warned in June that the deal could lead to price hikes and may boost Mars’ negotiating power with retailers, has subsequently found insufficient legal grounds to demand concessions, the sources said.
The Commission, the EU’s competition enforcer, declined to comment, as did Mars and Kellanova. An EU decision on the deal is due by Dec. 19.
A combined Mars and Kellanova would account for roughly 12% of the U.S. snacking and candy industry, according to market share data from NielsenIQ.
The deal was expected to close in August, prior to the European Commission’s launch of a 90-day investigation in June.
“Preliminary investigation indicates that, by enlarging its product portfolio with the addition of Kellanova’s very popular brands, Mars could increase its bargaining power vis-à-vis retailers,” the European Commission said in its June statement. “As a result, Mars could be in a position to use this increased leverage to, for example, extract higher prices during negotiations, which in turn would lead to higher prices for consumers.”
In the same week, though, the U.S. Federal Trade Commission cleared the deal following an antitrust review.
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.
(Reporting by Foo Yun Chee; Editing by Joe Bavier)
Virginia Business Deputy Editor Kate Andrews contributed to this story.
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