European Commission approves Mars-Kellanova merger - summary
- European Commission approves Mars’ $36bn acquisition of US snack brand Kellanova
- In-depth probe raised concerns about higher prices and retailer negotiations
- Commission concluded the merger will not harm competition in European markets
- Mars will expand to nine brands exceeding $1bn in annual global sales
- Deal expected to close on 11 December 2025 with growth and innovation focus
The European Commission has “approved unconditionally” the $36bn (€31bn) Mars, Inc. acquisition of US snack brand Kellanova, following a months-long probe, which began in June this year.
The Commission opened an in-depth investigation into the proposed merger back in summer, voicing concerns the transaction could lead to higher prices for consumers due to Mars’ increased negotiating power towards retailers in the European Economic Area.
However, the Commission has now concluded that, “the proposed transaction would not raise competition concerns in the European Economic Area”.
The EU’s executive arm found that both companies already have market power in parts of Europe, and as a combined company could link different categories to negotiate higher prices with retailers.
“We looked very carefully at this deal to make sure that Mars would not gain extra power over retailers, power that could lead to for example higher prices for shops and, ultimately, for consumers,” said Teresa Ribera, executive vice-president for clean, just and competitive transition at the European Commission. “Our review found no evidence that this risk exists, so we have decided to approve the acquisition. We will continue to make full use of our powers under the Merger Regulation to ensure that competition keeps food prices affordable.”
Mars-Kellanova merger imminent
The Commission’s approval was the deal’s last regulatory hurdle, and Mars now expects it to close on 11 December 2025.
“We are excited to have received final regulatory approval for the pending acquisition of Kellanova,” 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.”
“Today marks an extraordinary milestone and the culmination of years of work for many of our Associates,” added Andrew Clarke, global president of Mars Snacking. “We can’t wait to welcome Kellanova talent to Mars and create a shared, global snacking leader with a beloved range of brands. We’ve said all along that Mars Snacking and Kellanova will be better together, building on the strength of our respective legacies and capabilities to unlock new possibilities and drive growth.”
Meanwhile Steve Cahillane, chairman, president and CEO of Kellanova, said, “This combination will bring together two purpose-driven and principles-led companies. 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.”
Mars-Kellanova future
The Mars-Kellanova merger signals a new era of consolidation in the global snacking sector.
With scale and portfolio diversity becoming critical competitive levers, rivals may feel pressure to pursue similar deals to maintain shelf space and bargaining power with retailers.
Innovation and premiumisation are likely to accelerate as major players seek differentiation in a crowded market, while smaller brands could face tougher conditions unless they carve out niche positions.
For consumers, this could mean broader choice but also heightened scrutiny on pricing as inflationary pressures persist. Ultimately, the deal underscores how size and agility are shaping the future of packaged snacks worldwide.
More to follow.
