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Kellogg\u2019s cereal on sale in Motala, Sweden, 13 February 2025. Credit: Jeppe Gustafsson\/Shutterstock.com<\/p>\n
Mars today (25 June) said it is \u201cdisappointed but optimistic\u201d after the EU launched an in-depth probe of the US giant\u2019s planned takeover of Kellanova.<\/p>\n
The European Commission said it has \u201cpreliminary concerns\u201d the transaction, which would bring together brands including Snickers and Pringles, could lead to higher prices for consumers.<\/p>\n
Privately-owned snacks and confectionery giant Mars\u00a0sealed a deal<\/a>\u00a0for Kellanova last August for $35.9bn but with the proviso the transaction would need to be approved by competition authorities.<\/p>\n In a statement, the Commission said its initial findings indicate the acquisition could increase Mars\u2019 \u201cbargaining power vis-\u00e0-vis\u00a0retailers\u201d in the European Economic Area, which includes the EU as well as Iceland, Liechtenstein, and Norway.<\/p>\n Brussels said the companies \u201ceach have a strong market position in several product markets in multiple member states\u201d.<\/p>\n The Commission said several \u2013 unnamed \u2013 retailers had \u201craised concerns\u201d about the prospect of Mars\u2019 bargaining power if the company acquires Kellanova\u2019s portfolio.<\/p>\n In a statement, Mars told Just Food the combination of the manufacturers\u2019 \u201ccomplementary footprints and portfolios will deliver more choice and innovation to consumers\u201d.<\/p>\n It added: \u201cWe are disappointed yet remain optimistic that this investigation will be positively resolved. We have cooperated with the regulatory authorities, furnishing substantial supporting information and will continue to do so.\u201d<\/p>\n Mars\u2019 takeover of Kellanova, formerly part of Kellogg Company before a demerger of the business in 2023<\/a>, is one of the largest the packaged foods industry has seen in recent times, rivalling the 2015 merger of Kraft Foods and HJ Heinz.<\/p>\n The EU has until the end of October to make a decision on the proposed $36bn deal.<\/p>\n Mars said it now expects the transaction to close \u201ctowards the end of 2025\u201d but it added: \u201cThe exact timing cannot be predicted with any certainty at this point. We look forward to delivering the benefits of the pending transaction to all Mars and Kellanova stakeholders.\u201d<\/p>\n The merger of Mars and Kellanova would create a business with annual sales revenue of at least $60bn and a product range that would house brands including Skittles confectionery and Special K cereal. The deal would cover the Kellogg\u2019s range of cereals outside North America.<\/p>\n Mars also operates in pet food whereas its US peer does not. Plant-based foods, or Kellanova\u2019s MorningStar Farms brand, would also come under the Mars\u2019 umbrella.<\/p>\n Just Food has asked Mars if the company would consider offloading assets to secure EU approval for its move for Kellanova. At the time of publication, Mars had not commented.<\/p>\n \u201cBy acquiring Kellanova, Mars will add several very popular brands of potato chips and cereals to its already broad and strong product portfolio,\u201d Commission EVP Teresa Ribera said. \u201cAs inflation-hit food prices remain high across Europe, it is essential to ensure that this acquisition does not further drive up the cost of shopping baskets. Our in-depth investigation will assess the transaction\u2019s impact on the price of these companies\u2019 products for consumers in the EEA.\u201d<\/p>\n Just Food Excellence Awards – Have you nominated?<\/p>\n Nominations are now open for the prestigious Just Food Excellence Awards<\/strong><\/a> – one of the industry’s most recognised programmes celebrating innovation, leadership, and impact<\/strong>. This is your chance to showcase your achievements, highlight industry advancements<\/strong>, and gain global recognition<\/strong>. Don’t miss the opportunity to be honoured among the best – submit your nomination today!<\/p>\n