European Commission Approves Mars’ $36 Bn Acquisition of Kellanova

The European Commission has approved Mars’ $36 bn purchase of Kellanova, the maker of Pringles, the EU executive announced on Monday. The decision follows a full-scale investigation launched in June amid concerns the deal could drive up prices.

The acquisition, one of the largest in the snacks sector, brings together brands including M&Ms, Snickers, Whiskas, Pringles, Pop-Tarts and Kellogg’s cereals. The Commission said the transaction is unlikely to cause competition issues in the European Economic Area.

Officials noted that while both companies hold market power in parts of Europe and could theoretically bundle products to negotiate higher prices with retailers, consumer loyalty is limited. Shoppers are likely to switch supermarkets, reducing the risk that Mars could increase its bargaining power.

The EU approval was the final regulatory step, and Mars now expects the deal to complete on December 11. Andrew Clarke, global president of Mars Snacking, said the merger will offer consumers more choice, expanding the company’s portfolio of brands with annual sales exceeding $1 bn from six to nine, with potential for further growth.

Addressing concerns about higher prices, Clarke acknowledged Mars faces inflationary pressures but intends to innovate and provide varied product sizes. Regarding possible job cuts, he said some overlapping roles would be reviewed, but the company plans to invest in the brands and grow the business over the long term.