Mars Clears U.S. Hurdle in $36 Billion Kellanova Deal as EU Launches Antitrust Probe

The U.S. Federal Trade Commission (FTC) has approved the $36 billion acquisition of Pringles-maker Kellanova by candy giant Mars. The decision came after a review concluded that the merger did not violate U.S. antitrust laws. Daniel Guarnera, Director of the FTC’s Bureau of Competition, stated that the agency’s role is to intervene only when there is evidence of harm to competition.

Once they determined there was no legal basis to block the deal, the FTC ended its review early. Mars expressed satisfaction with the U.S. clearance and noted that all regulatory approvals had been secured, except from the European Union.

EU Probes Mars-Kellanova Deal Over Fears of Price Hikes and Market Dominance

In contrast to the U.S., the European Union has launched a full-scale antitrust investigation into the Mars-Kellanova deal. EU regulators expressed concerns that the merger could lead to higher prices for consumers by increasing Mars’ negotiating power with retailers.

The European Commission warned that the combined company’s strengthened portfolio might give it undue leverage, forcing retailers to accept higher prices to avoid losing access to popular brands. Mars responded with disappointment but remained optimistic about finalizing the deal by the end of 2025.

The EU investigation could result in Mars being required to divest certain assets to alleviate antitrust concerns or risk having the deal blocked altogether. The Commission emphasized that the transaction might significantly impact competition in various EU markets due to both companies holding dominant positions in several product categories.

Retailers have voiced fears about Mars’ growing influence and the pressure it could place on their pricing power, especially in categories like breakfast cereals, confectionery, and snack foods.

Consumer Concerns Grow Amid Rising Food Prices and Global Market Power Shifts

Consumer advocacy groups in the U.S. had also raised concerns, drawing parallels to other controversial mergers such as Kroger’s proposed acquisition of Albertsons. However, analysts noted that there was limited overlap in Mars and Kellanova’s product lines, which helped the deal clear U.S. antitrust hurdles.

Combined, Mars and Kellanova would control around 12% of the U.S. snacking and candy market. Despite the merger, major competitors like PepsiCo, Kraft Heinz, Mondelez, Hershey, and General Mills would remain significant players in the industry.

The European Commission has set an October 31 deadline to issue its final ruling on the deal. The ongoing investigation highlights broader concerns across Europe regarding inflation and the growing dominance of major multinational food companies.

With food prices still elevated, regulators are cautious about mergers that could drive costs even higher for consumers. The result of the EU review will be pivotal in deciding whether Mars can finalize one of the largest acquisitions in the consumer goods sector and how it could alter competitive dynamics within the global food industry.