EU Commission approves Mars’ US$36B Kellanova deal
Key takeaways
- The European Commission grants unconditional approval for Mars’ US$36 billion acquisition of Kellanova.
- The combined company would become a global snacking powerhouse with nine billion-dollar brands.
- Mars Snacking will expand its global footprint, integrating Kellanova’s portfolio post-closing as its stock is delisted from the New York Stock Exchange.
The European Commission has given the final green light, marking “unconditional approval” for the Mars and Kellanova merger. The combined snacking business is expected to generate around US$36 billion in annual revenues, with a portfolio that includes nine billion-dollar brands.
Following an investigation into the proposed deal, the commission gave its unconditional nod yesterday, stating that candy and snacks giant Mars’ bid to acquire Kellanova has received EU antitrust approval, following an investigation into the takeover that began in June.
The commission initially raised concerns about the potential for higher consumer prices, given that both businesses have a large presence in Europe.
The merger has already secured approval without any conditions from US authorities.
New possibilities and growth
It is understood that a combined Mars and Kellanova would account for around 12% of the US snacking and confectionery industry.
Mars Snacking will continue to be headquartered in Chicago, US, and operate in more than 145 markets. It will operate 80 global production facilities and more than 170 retail outlets, including Hotel Chocolat and M&M’S World.
“We are excited to have received final regulatory approval for the pending acquisition of Kellanova,” says Poul Weihrauch, CEO and office of president of Mars. “Our focus now turns to welcoming Kellanova employees to Mars and creating an even more innovative global snacking business that delivers greater choice and quality to more consumers around the world.”
Mars is a US multinational manufacturer of pet care, snacking, and food products, while Kellanova is a key player in the snacking, cereal, and noodles categories, owning the Pringles and Kellogg’s brands.
Steve Cahillane, president and CEO of Kellanova, adds that this combination will bring together two purpose-driven and principles-led companies.
The two businesses initially said that they had entered into a definitive agreement under which Mars agreed to acquire Kellanova in August 2024.
Following the completion of the transaction, which remains subject to customary closing conditions, Kellanova’s common stock will be delisted and cease trading on the New York Stock Exchange.
