The European Commission announced on Monday (December 8th) that it has approved candy and snack giant Mars’ acquisition of Kellanova, the manufacturer of Pringles, for $36 billion.
Prior to this, the European Commission launched a comprehensive investigation into the acquisition in June due to concerns about market competition.
In a statement released on Monday, the European Commission stated that after a thorough review, the deal has been unconditionally approved.
“The conclusion of the Commission is that the proposed transaction will not raise concerns about competition within the European Economic Area,” the statement said.
According to Reuters, Mars’ acquisition of Kellanova is one of the largest mergers in the snack industry’s history. The deal was initially announced in August 2024, bringing brands like M&Ms, Snickers, Whiskas, Pringles, Pop-Tarts, and Kellogg’s under one roof.
The European Commission stated that this deal combines Mars’ candy and pet food brands with Kellanova’s snack and cereal business. The Commission concluded that the merged entity will not significantly increase its bargaining power relative to retailers.
Teresa Ribera, Vice President in charge of competition affairs at the European Commission, said, “We have carefully reviewed this transaction to ensure that Mars does not gain additional power over retailers.” She pointed out that “our review did not find evidence of such risk.”
The focus of the Commission’s investigation was whether the expanded product portfolio would allow Mars to extract higher prices from supermarkets through the so-called “basket effect.” However, the review determined that there was not enough evidence to support this theory.
After the examination, the Commission ruled that products like Pringles and chocolate bars, which are typically considered “impulsive and infrequent purchases,” are unlikely to cause consumers to change where they shop based solely on the availability of these products.