Under European Union Merger regulations, the EC conducted an in-depth investigation into whether the addition of Kellanova’s brands would significantly increase Mars’s bargaining power through retailers.
“We looked very carefully at this deal to make sure that Mars would not gain extra power over retailers, power that could lead to, for example, higher prices for shops and, ultimately, for consumers,” Teresa Ribera, executive vice president for Clean, Just, and Competitive Transition, said in the EC approval notice.
“Our review found no evidence that this risk exists, so we have decided to approve the acquisition. We will continue to make full use of our powers under the Merger Regulation to ensure that competition keeps food prices affordable.”
Under the terms of the acquisition, Mars Snacking will be headquartered in Chicago and will operate in more than 145 markets. Its global production facilities will be located in 80 markets worldwide, and the new merged company will also operate more than 170 retail outlets, including Hotel Chocolat and M&M’s World.
“We are excited to have received final regulatory approval for the pending acquisition of Kellanova,” Mars CEO Poul Weihrauch and the Office of the President of Mars Inc. said in the release.
“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.”
In August 2024, both firms announced that they had entered into a definitive agreement under which Mars would acquire Kellanova. The proposed transaction received Kellanova shareowner approval in November 2024 and all final regulatory approvals by Dec. 8.
Following the merger, Kellanova’s common stock will be delisted from the New York Stock Exchange and cease trading.
Headquartered in McLean, Virginia, Mars Inc. is a $55 billion family-owned business with 150,000 associates worldwide. In addition to its famous brands of sweets, the company also produces pet foods, including Royal Canin, Whiskas, Pedigree, and others, and operates veterinary hospitals, including Banfield, VCA, and BluePearl.
Kellanova, headquartered in Chicago, has been a global leader in cereal and snack foods for more than 100 years. In addition to Kellogg’s cereal brands like Rice Krispies and Pop-Tarts, it produces additional breakfast brands such as Eggo waffles, MorningStar Farms breakfast foods and snacks like Cheez-It.