Mars and Kellanova merger approved by the European Commission. A new player in the FMCG industry
The European Commission has unconditionally approved the acquisition of Kellanova by Mars. Kellanova belongs to, among others, Pringles or Kellogg's brand. According to the website newshandlowe.pl, the decision was preceded by a multi-week investigation, which was to check whether the concentration would not have a negative impact on competition in the European Economic Area.
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The notification was submitted to the EC on May 16, 2025, and the detailed analysis began on June 25 – then phase II proceedings were initiated. Ultimately, the Commission concluded that the takeover did not require any conditions or remedies. At the same time, a similar consent was previously given by the American FTC.
What did the Commission investigate and why does it not see a risk?
The in-depth investigation was intended to determine whether the combination of Mars' extensive portfolio (from M&M's to Whiskas) with the Kellanova brands (Pringles, Kellogg's) would increase the company's negotiating power towards retail chains. It was about, among other things, about the possibility of “combining categories” in sales conversations, which could put retailers in a more difficult situation.
However, according to the website poznascihandlowe.pl, The EC found no evidence that the transaction would lead to price pressure or deterioration of competition conditions. Kellanova products have a long shelf life and are often bought on impulse, which, according to the Commission, limits their strategic importance for the network.
Moreover, the analysis did not find the existence of the so-called basket effect – a situation in which consumers would switch stores due to the simultaneous lack of products from both companies.
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Portfolio of two giants – a new balance of power on the market
The combination of Mars and Kellanova creates one of the strongest players in the confectionery, snacks, breakfast cereals and pet food categories. Mars owns such icons as Snickers, M&M's, Ben's Original and Whiskas, and Kellanova is responsible for Pringles and the iconic Kellogg's cereal.
According to the website newshandlowe.pl, the merger arouses great interest in the industry because it combines brands with huge recognition and a very wide distribution range.
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Investments in the EU and possible effects on trade
The deal was also previously approved in the US. At the same time, Mars announced that by the end of 2026 it will allocate EUR 1 billion for investments in the European Union. They are intended to strengthen production, sustainability and innovation, which may also impact regional supply chains.
Although the Commission found no competition risks, the mere combination of such high-value brands could change the way retailers negotiate commercial terms. This may affect promotions, product display and pricing policy in the coming years, as the news website writes.
