The European Commission has approved Mars Incorporated’s proposed $36 billion acquisition of food producer Kellanova, saying the deal would not create competition concerns in Europe.
Mars is known for products including chocolate bars like Mars, Snickers, and Twix, chewing gum such as Airwaves, rice brands like Ben’s Original, and pet foods including Whiskas and Royal Canin.
Kellanova, formerly Kellogg Company, is primarily recognised in Europe for savoury snacks like Pringles and ready-to-eat cereals such as Special K.
A Commission investigation found that adding Kellanova’s brands to Mars’ portfolio would not notably strengthen Mars’ bargaining power when negotiating with retailers.
Evidence showed that Kellanova’s products, which typically have a long shelf life and are bought impulsively, do not give Mars greater influence over retailers.
Shoppers are not especially loyal to both companies’ brands, and would not be more likely to change supermarkets if these products were unavailable at their regular retailer, according to the Commission.
There was insufficient support for the idea that consumers would shop elsewhere for all their groceries in response to the absence of both Mars and Kellanova products, the EU executive concluded.
Mars is based in the United States and supplies food, pet food, and animal care services globally.
Kellanova is also headquartered in the US and markets savoury snacks and breakfast cereals.
