Kellanova Faces EU Antitrust Hurdle in Mars Acquisition

The European Commission (EC) has initiated an in-depth investigation into the proposed $36 billion acquisition of Kellanova, the maker of Kelloggs and Pringles, by confectionery giant Mars. The EC is concerned that the merger could lead to increased prices for consumers, owing to the enhanced bargaining power Mars would have by adding Kellanova to its portfolio. Despite these concerns, US regulators have cleared the merger, suggesting it does not breach antitrust norms. However, the EC's investigation may compel Mars to divest certain assets to alleviate these concerns or risk having the deal blocked. The Commission highlighted concerns from various retailers regarding potential price hikes as Mars’ bargaining power grows. In response, Mars expressed disappointment over the EC's decision but remained hopeful about the merger's completion. EU antitrust chief, Teresa Ribera, emphasized the need to scrutinize the transaction's implications for consumer prices, particularly against the backdrop of inflation. The EC aims to make a decision by October 31, 2025. Mars believes the merger will enhance consumer choice and innovation.