Mars Incorporated’s proposed $36 billion acquisition of KELLANOVA (XNYS-K), the parent company of Pringles and Kellogg’s cereals, is facing a formal investigation by the European Commission (EC) over concerns it could give Mars excessive market power and lead to higher consumer prices.
The deal, one of the largest ever in the food industry, would significantly expand Mars’ already dominant portfolio, which includes iconic chocolate brands like Mars, Snickers, M&M’s, and Twix, as well as pet food labels such as Sheba, Whiskas, and Pedigree. By acquiring Kellanova, Mars would add popular snack and breakfast brands to its lineup, including Pringles and a wide range of Kellogg’s cereals.
Retailers across Europe have voiced concerns to the EC, warning that the merger could reduce competition and force them to accept steep price increases costs that would likely be passed on to consumers. With food inflation still high across the continent, regulators are particularly wary of any consolidation that could further strain household budgets.
European Commissioner Teresa Ribera emphasized the potential risks: “By acquiring Kellanova, Mars would integrate several highly popular brands of chips and cereals into an already broad and powerful product portfolio. At a time when food prices remain elevated, we must ensure this deal does not exacerbate the cost of living for European households.”