The European Commission has granted unconditional approval for Mars’ $36 billion (€30,915,000,000) merger with Kellanova, ruling that the deal would not inflate the merged entity’s bargaining power.
A definitive agreement for Mars to acquire Kellanova was first announced on 14th August 2024. Kellanova shareowners approved the pending transaction on 1st November 2024.
From 25th June 2025, the European Commission investigated the proposed transaction to determine whether the combined portfolio would ‘significantly increase’ Mars’ bargaining power to its own advantage – enabling it to extract higher prices, for example.
While both companies hold market power across various Member States, and the merged entity could potentially link different product categories in negotiations with retailers, the Commission did not find evidence that the merger would raise competition concerns.
As such, Mars and Kellanova have now obtained all required regulatory approvals and clearances. The pending transaction is still subject to customary closing conditions, but if these are met, the deal is anticipated to close on 11th December.
At this point, Kellanova’s snacking brands – including Pringles, Kellogg’s, Pop-Tarts, Rice Krispies Treats, and Cheez-It – will be incorporated into the existing Mars Snacking portfolio. Mars anticipates that the combined business will generate approximately $36 billion in annual revenues.
“We are excited to have received final regulatory approval for the pending acquisition of Kellanova,” said Poul Weihrauch, CEO and office of the president of Mars, Incorporated. “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.”
Andrew Clarke, global president of Mars Snacking, told Reuters that the group will now have nine brands with over $1 billion and plans to push others over the same benchmark. When asked whether the deal would raise product prices, he acknowledged that inflation has affected Mars, but emphasized its plans to develop more product sizes and give consumers more choices.
“We can’t wait to welcome Kellanova talent to Mars and create a shared, global snacking leader with a beloved range of brands,” Clarke commented. “We’ve said all along that Mars Snacking and Kellanova will be better together, building on the strength of our respective legacies and capabilities to unlock new possibilities and drive growth.”
Once the transaction is completed, Kellanova’s common stock will be delisted and will cease trading on the New York Stock Exchange.
Mars Snacking will remain headquartered in Chicago and operate in over 145 markets – operating 80 global production facilities and more than 170 retail outlets.
“This combination will bring together two purpose-driven and principles-led companies,” added Steve Cahillane from Kellanova. “Serving as Kellanova’s chairman, president and CEO has been a true honour, and I’m looking forward to seeing Kellanova people and brands thrive as part of Mars Snacking.”
In a similar development, Ferrero previously announced that it would acquire WK Kellogg for a total enterprise value of $3.1 billion. It planned to take ownership of WK Kellogg’s boxed cereal portfolio as health trends and rising prices caused concern for the WK Kellogg product line.
Since then, the Commission commenced an investigation into Abu Dhabi National Oil Company’s acquisition of Covestro – fearing that foreign subsidies from the UAE could distort the EU’s internal market.
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