EU Investigates Mars-Kellanova Deal Over Potential Price Hikes

EU Investigates Mars-Kellanova Deal Over Potential Price Hikes

The European Union's antitrust regulators have launched a full-scale investigation into Mars' proposed $36 billion acquisition of Kellanova, the maker of Pringles. The EU commission is concerned the merger could lead to increased negotiating power for Mars, potentially resulting in higher prices for consumers.

EU Concerns

This could force Mars to sell off assets to alleviate the EU's competition concerns, or risk having the entire deal blocked. Mars expressed disappointment but remains optimistic about finalizing the deal towards the end of 2025.

Potential Market Impact

The EU's investigation highlights concerns that combining Mars' brands like M&Ms and Snickers with Kellanova's Pringles and Pop-Tarts will give Mars excessive leverage in price negotiations with retailers. Some European retailers have already voiced concerns about the increased bargaining power of large suppliers and the high concentration of power in markets such as confectionery and breakfast cereals.

Antitrust Chief's Statement

EU antitrust chief Teresa Ribera emphasized the need to ensure that the acquisition doesn't further inflate food prices, especially given current high inflation across Europe. A final decision from the Commission is expected by October 31.