EU Halts Review of Mars’ $36 Billion Acquisition of Kellanova Pending Data Submission

The European Commission, which oversees competition policy across the 27-nation bloc, launched an in-depth probe into the deal last month, citing concerns that it could lead to higher prices and reduced competition in the snack food market. Per Reuters, the watchdog is closely examining how the merger might affect market dynamics, particularly in categories where Mars and Kellanova have overlapping products.

In a statement, the Commission confirmed the procedural pause, noting that the timeline of merger assessments can be interrupted if the involved companies do not deliver key data within a specified period. “The ‘clock’ in merger investigations can be suspended if the parties fail to provide, in a timely fashion, an important piece of information that the Commission has requested from them within a prescribed deadline,” the EU regulator said in an email.

Related: Mars Faces Full EU Probe After Passing on Concessions in Kellanova Deal

The review will resume once the requested information is submitted, at which point a new deadline will be set. The original deadline for a decision had been October 31.

Meanwhile, across the Atlantic, the U.S. Federal Trade Commission approved the deal unconditionally last month, signaling no competition concerns from American regulators. However, the outcome of the EU investigation remains a pivotal step before the merger can move forward globally.

Source: Reuters