On Monday 8 December, following an in-depth investigation launched in June, the European Commission unconditionally approved the proposed acquisition of Kellanova by Mars, finding that the transaction does not raise competition concerns in the European Economic Area (EEA) under the Merger Regulation (139/2004).
The EU institution examined the extent to which the addition of Kellanova’s brands, such as Pringles and Kellogg’s, to Mars’ already substantial portfolio, which includes chewing gum, chocolate bars, sweets and pet food, would significantly increase Mars’ bargaining power with retailers and therefore lead to higher prices for shops and consumers.
In the Commission’s view, even if the merged entity could group together different product categories, the nature of Kellanova’s products and the behaviour of consumers of products manufactured by Mars and Kellanova do not allow such a conclusion to be reached. (Original version in French by Mathieu Bion)