Mars set to win unconditional EU nod for $36 billion Kellanova deal, sources say
Mars is poised to receive unconditional EU antitrust approval for its $36 billion acquisition of Kellanova, which includes brands like Pringles, M&Ms, and Snickers. The deal has already been approved by U.S. authorities. Despite initial concerns about potential price increases and market power, the European Commission found no legal grounds for concessions. A decision from the EU is expected by December 19, with the combined entity holding about 12% of the U.S. snacking and candy market.
By Foo Yun Chee
BRUSSELS, Oct 7 (Reuters) - Candy and snacks giant Mars’ $36 billion bid to acquire Pringles maker Kellanova (K.N) 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 December 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.
