The European Commission has approved Mars’ $35.9bn acquisition of Kellanova, concluding that the deal will not raise competition concerns for retailers across the European Economic Area.
Regulators assessed whether combining the companies’ snacking and cereal portfolios would give Mars greater leverage in retail negotiations. The final review found no evidence that the enlarged business would gain additional bargaining power.
The assessment noted that both companies already hold significant positions in several national markets. It also examined the possibility that Mars could link product categories during negotiations once Kellanova’s brands are added to its portfolio.
Investigators determined that the nature of the products involved, which have long shelf lives and low purchase frequency, limits any potential shift in retailer dependence. The Commission also found no indication that consumer behaviour would strengthen Mars’ position if certain brands were unavailable in stores.
US regulators cleared the acquisition earlier this year. Mars and Kellanova expect the deal to close on Thursday, subject to the remaining conditions. The merger brings together major confectionery, snacking, and international cereal brands and marks one of the largest transactions in the packaged food sector in recent years.