Mars-Kellanova $36B Deal Clears U.S. Review, Faces EU Antitrust Scrutiny

U.S. regulators have cleared Mars Inc.’s $36 billion acquisition of Pringles maker Kellanova, but the European Union has launched a full-scale antitrust investigation, citing concerns over potential price increases.

The Federal Trade Commission (FTC) said the deal doesn’t violate antitrust laws. Bureau of Competition Director Daniel Guarnera emphasized that if no legal issue is found, “our job is to get out of the way.” Mars confirmed that the U.S. decision leaves the EU as the only pending regulatory hurdle and expects the deal to close by late 2025.

However, the European Commission expressed concern that the merger could inflate prices due to Mars’ enhanced negotiating power with retailers. It warned that Mars’ expanded product portfolio—combining iconic brands like M&M’s, Snickers, Whiskas, Pringles, and Pop-Tarts—could give the company undue leverage. The Commission set an October 31 deadline for a final decision.

Retailers and consumer advocacy groups in the EU have raised alarms, fearing Mars may pressure retailers into accepting higher prices to avoid losing access to popular brands. EU antitrust chief Teresa Ribera highlighted that amid ongoing food inflation, further price hikes would hit consumers hard.

In the U.S., Mars and Kellanova together would control about 12% of the snacking and candy market, still trailing competitors like PepsiCo, Mondelez, and Hershey. Critics had previously compared the deal to the controversial Kroger-Albertsons merger, citing fears of reduced competition.

Mars expressed disappointment with the EU probe but remains “confident” the merger will benefit stakeholders by delivering more choice and innovation. The deal, one of the largest in the food sector, underscores rising scrutiny of big mergers amid growing market consolidation and food inflation.