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FTC Clears $36B Mars-Kellanova Deal, EU Raises Price Concerns

By  |  June 26, 2025

U.S. antitrust regulators have greenlit Mars Inc.’s planned $36 billion acquisition of Kellanova, the maker of Pringles, while European authorities have launched a comprehensive investigation into the deal, citing potential risks to consumer pricing and market competition.

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    According to Reuters, the Federal Trade Commission (FTC), its Bureau of Competition concluded that the merger did not meet the threshold for an anticompetitive transaction under U.S. law. “Our job is to determine whether there is a violation of American law that we can prove in court. And once we’ve concluded there is not, our job is to get out of the way,” said Daniel Guarnera, Director of the FTC’s Bureau of Competition, in the agency’s formal announcement of its decision to end the review early.

    The move signals that the FTC does not believe the Mars-Kellanova combination would significantly harm competition in the U.S. snack and candy market. According to the statement, despite calls from consumer advocates to scrutinize the deal, the agency found no grounds to challenge it.

    Mars, which owns brands like M&M’s, Snickers, and Whiskas, expressed satisfaction with the U.S. decision and said it expects the transaction to close by late 2025, pending remaining approvals. “We remain confident the pending combination of Mars Snacking and Kellanova’s complementary footprints and portfolios will deliver more choice and innovation to consumers,” Mars said in a statement. It also emphasized that all regulatory approvals had been obtained except from the European Union.

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

    Meanwhile, in Europe, antitrust regulators have initiated a full-scale investigation into the merger. Per a statement from the European Commission, officials are concerned that the deal could give Mars excessive leverage in pricing negotiations with retailers, potentially leading to higher consumer prices.

    The EU’s antitrust division warned that the merger could enhance Mars’ already significant bargaining power by expanding its portfolio across both sweet and savory snack segments, heightening risks of diminished competition. The probe could require Mars to divest parts of its business or face the possibility of the deal being blocked altogether.

    In response to the EU’s move, Mars said it was disappointed but remained “optimistic” about securing final approval. “We look forward to delivering the benefits of the pending transaction to all Mars and Kellanova stakeholders,” the company stated.

    The merger, originally announced in August 2024, is one of the largest in the global snack industry. If completed, it would unite iconic brands such as Pringles, Pop-Tarts, and Kellogg cereals with Mars’ portfolio, which includes leading chocolate and pet food labels. According to data from NielsenIQ, the combined entity would represent roughly 12% of the U.S. snack and candy market, still trailing behind or competing with industry giants like PepsiCo, Mondelez, Kraft Heinz, Hershey, and General Mills.

    Though some analysts have pointed to limited overlap between the companies’ existing product lines, consumer advocacy groups in the U.S. had earlier likened the deal to the controversial Kroger-Albertsons merger, raising alarms about its potential impact on food prices and retail competition.

    Source: Reuters