EU investigates Kellanova takeover by Mars due to price increases

Published: 2025-06-26 15:01:09 ET K

Published on 06/26/2025 at 15:01

Key takeaways

The European Union has launched an in-depth investigation into the $36 billion (approximately €30.7 billion) acquisition of Pringles-maker Kellanova by Mars, potentially delaying the deal until the end of 2025.

Mars, a multinational known for its extensive portfolio of popular food brands including chewing gum, chocolate, confectionery, rice, and pet food, is seeking to acquire Kellanova. Kellanova, formerly the Kellogg Company, is known in the EEA for its famous Pringles chips and ready-to-eat breakfast cereals under the Kellogg’s brand.

Concerns over market dominance

The Commission’s investigation focuses on the possibility that Mars could leverage a broader product portfolio, including Kellanova’s popular brands, to strengthen its bargaining position with retailers. This increased leverage could allow Mars to negotiate higher prices, which could ultimately lead to price increases for consumers.

The objections mainly stem from the strong market positions both companies hold in multiple product categories across various member states. Brand recognition and consumer demand significantly contribute to their dominant market positions. Retailers have expressed concerns about Mars’s increased bargaining power if it acquires Kellanova’s highly sought-after brands. As a result, retailers could be forced to accept higher prices to access these products, which could impact consumer choice and affordability.

In light of these preliminary findings, the Commission has launched an in-depth investigation to assess the impact of the transaction on competition within the EEA. The investigation will determine whether the initial concerns about price increases and market dominance are justified. The Commission has 90 days, until October 31, 2025, to reach a decision.