After an in-depth investigation that took months, the European Commission has concluded that Mars’ acquisition of Kellanova (the owner of Pringles and Kellogg’s) does not pose a risk to competition or consumers.
Unconditional approval
After the US competition authorities gave the green light for the acquisition in June, the European Commission also gave its unconditional approval on Monday to the acquisition of Kellanova, the group behind Pringles crisps and Kellogg’s breakfast cereals, by Mars, the US manufacturer of Mars, Snickers, Ben’s Original, and Whiskas, among others. This was confirmed today by both the European Commission and the manufacturer in a press release. As a result, Kellanova will disappear from the New York Stock Exchange.
The European approval came after months of investigation into Mars’ bargaining power vis-à-vis European retailers. There were fears that the American multinational, through the integration of Kellanova’s strong brands, would be able to demand higher prices, which would ultimately be to the detriment of European consumers. Several retailers had shared their concerns about this. However, the Commission’s analysis does not indicate that the transaction would strengthen Mars’ bargaining position vis-à-vis retailers.
