McLEAN, Va., and CHICAGO — Mars, Incorporated has obtained unconditional approval from the European Commission for its major acquisition of Kellanova, removing the last regulatory obstacle and paving the way to finalize the $36 billion deal on December 11.
The approval concludes an 18-month review process that included a thorough EU antitrust investigation launched in June over concerns that merging the two global snack giants could lead to higher prices or increase Mars’s bargaining power with retailers. Regulators ultimately found no evidence that the deal would harm competition.
“We looked very carefully at this deal to make sure that Mars would not gain extra power over retailers,” said Teresa Ribera, the EU’s antitrust commissioner. “Our review found no evidence that this risk exists.”
With approvals already secured from U.S. regulators and Kellanova shareholders, Monday’s decision finalizes the necessary approvals. Mars announced it now plans to merge the companies later this week, forming a snacking giant with approximately $36 billion in annual sales, nine billion-dollar brands, and operations in over 145 markets.
Uniting Two Iconic Portfolios
Once the merger closes, Kellanova’s signature brands — including Pringles, Cheez-It, Pop-Tarts, Rice Krispies Treats, RXBAR, and Kellogg’s international cereals — will join the Mars Snacking portfolio, which also includes M&M’s, SNICKERS, TWIX, SKITTLES, EXTRA, and KIND. Mars stated that the combined division will remain headquartered in Chicago and will be supported by more than 50,000 employees across 80 manufacturing facilities worldwide.
“We are excited to have received final regulatory approval,” said Poul Weihrauch, CEO and Office of the President of Mars. “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.”
Andrew Clarke, Global President of Mars Snacking, said the combination strengthens the company’s ability to grow its most prominent brands. “This shared, global snacking leader will build on the strength of our respective legacies and capabilities to unlock new possibilities and drive growth,” he said.
In an interview with Reuters, Clarke stated that the expanded portfolio gives Mars “line of sight to take more [brands] above $1 billion” and that product innovation and sizing strategies would help manage price pressures. He acknowledged some overlap between the companies but stressed that Mars plans to invest in the brands for long-term growth.
Kellanova Leadership Transition
Kellanova Chairman, President and CEO Steve Cahillane, who guided the company through its 2023 spinoff from Kellogg Co., will step aside following the close.
“This combination will bring together two purpose-driven and principles-led companies,” Cahillane said. “Serving as Kellanova’s Chairman, President and CEO has been a true honor, and I’m looking forward to seeing Kellanova people and brands thrive as part of Mars Snacking.”
Kellanova’s common stock will be delisted from the New York Stock Exchange after the merger is finalized.
A Record-Breaking Deal in Packaged Foods
The transaction ranks among the largest ever in the packaged-food industry and marks a major strategic move for Mars, which has been expanding its snacking presence amid unstable cocoa prices and changing consumer preferences. Earlier this year, Mars issued $26 billion in bonds to help finance the acquisition.
The partnership speeds up Mars’ goal of doubling its snacking business size over the next decade and continues a series of targeted acquisitions, including Hotel Chocolat, Tru Fru, and KIND North America.
With final approval in hand, Mars and Kellanova now move to finalize the deal on December 11, uniting two iconic food brands just in time for the holiday season.
