Mars Optimistic Amid EU Probe Into Kellanova Takeover
Deal News | Jun 25, 2025 | EIN
Mars is facing a detailed probe from the European Commission regarding its planned $35.9 billion acquisition of Kellanova, a deal expected to unite popular brands such as Snickers and Pringles under one corporate entity. The Commission has raised preliminary concerns that the merger might enhance Mars' bargaining power with retailers, potentially driving up prices for consumers. Despite these concerns, Mars remains optimistic about a favorable outcome and continues to cooperate with regulatory bodies by providing extensive information. The acquisition, one of the largest in the packaged foods industry, involves Kellanova's demerged business from Kellogg Company. The deal could also expand Mars' product line to encompass cereal brands outside North America and plant-based products. The European Commission has until October to deliver a verdict, and Mars anticipates the transaction closure by the end of 2025. However, it remains unclear whether Mars will need to offload assets to gain approval.
Sectors
- Food and Beverage
- Competition Law/Regulatory
Geography
- European Union – The article involves the European Commission's investigation and covers market impacts across the EU and the European Economic Area.
- United States – Both Mars and Kellanova are U.S.-based companies, central to the transaction discussed in the article.
Industry
- Food and Beverage – The article discusses a significant merger within the packaged foods sector, involving major brands in the snacks and cereal categories.
- Competition Law/Regulatory – The article focuses on the regulatory scrutiny by the European Commission concerning a major acquisition, indicative of its influence on market competition.
Financials
- $35.9 billion – The total value of the acquisition deal between Mars and Kellanova.
- $60 billion – The expected annual sales revenue of the merged Mars-Kellanova entity.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Mars | Bidding Company | Company | A privately-owned U.S. giant in the snacks and confectionery industry, seeking to acquire Kellanova. |
| Kellanova | Target Company | Company | Previously part of Kellogg Company, Kellanova is the target of Mars' acquisition efforts. |
| European Commission | Regulatory Body | Government | The EU body responsible for evaluating the competition implications of the Mars-Kellanova acquisition. |
| Just Food | Media Source | Company | A news outlet that provided statements from Mars regarding the merger. |